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Full text of "Code of laws of South Carolina 1952, Annotated"

TT OF SOUTH CAROLINA 
' LAW LIBRARY 



The 

University of South Carolina 




Coleman Karesh 

Law Library 



CODE TITLES WITH THEIR VOLUME NUMBERS 



Volume 1. 

1. Administration of the Government. 

2. Aeronautics. 

3. Agriculture. 

4. Alcohol and Alcoholic Beverages. 

5. Amusements and Athletic Contests. 

6. Animals. 

7. Appeals. 

8. Banking, Commercial Paper and Fi- 

nance. 

9. Boards. and Commissions. 

10. Civil Remedies and Procedure. 

11. Contracts and Agency. 

12. Corporations. 

Volume 2. 

13. Cotton. 

14. Counties. 

15. Courts. 

16. Crimes and Offenses. 

17. Criminal Procedure. 

18. Dams and Drains ; Sanitary and 

Drainage Commissions and Dis- 
tricts. 

19. Decedents' Estates. 

20. Domestic Relations. 

Volume 3. 

21. Education. 

22. Educational Institutions. 

23. Elections. 

24. Electricity. 

25. Eminent Domain. 

26. Evidence. 

27. Fees and Costs. 

28. Fish, Game, etc. 

29. Forestry. 

30. General Assembly. 

31. Guardian and Ward. 

32. Health. 

Volume 4. 

33. Highways, Bridges and Ferries. 

34. Homestead and Other Exemptions. 

35. Hotels, Boarding Houses, Restaurants 

and Tourist Camps. 



36. Housing and Redevelopment. 

37. Insurance. 

38. Juries and Jurors in Circuit Courts. 

39. Jurisdiction of State and United 

States. 

40. Labor and Employment. 

41. Landlord and Tenant. 

42. Libraries. 

43. Magistrates and Constables. 

44. Military, Civil Defense and Veterans' 

Affairs. 

45. Mortgages and Other Liens. 

46. Motor Vehicles. 



Volume 5. 



47 
48 



50 

51 
52, 



Municipal Corporations. 

Names. 

49. Notaries Public and Commissioners 
of Deeds. 

Officers and Employees. 

Parks and Playgrounds. 

Partnerships and Joint Stock Com- 
panies. 

53. Peace Officers. 

54. Ports and Maritime Matters. 

55. Prisons and Other Methods of Cor- 

rection. 

56. Professions and Occupations. 

57. Property and Conveyances. 

58. Public Service Companies. 

Volume 6. 

59. Public Works and Certain Public Au- 

thorities. 

60. Registration and Recordation. 

61. Retirement Systems. 

62. Securities. 

63. Soil Conservation and Improvement. 

64. Sundays, Holidays and Other Special 
Days. 

Taxation. 

66. Trade and Commerce. 

67. Trusts and Fiduciaries. 
Unemployment Compensation. 
Warehouses. 

70. Waters and Watercourses. 

71. Welfare. 

72. Workmen's Compensation. 



65 



68. 
69. 



'JUTH CAROLINA 
L OF LAW LIBR/ 



Digitized by the Internet Archive 

in 2011 with funding from 

LYRASIS Members and Sloan Foundation 



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CODE OF LAWS 

OF 

SOUTH CAROLINA 

1952 

IN EIGHT VOLUMES 



ANNOTATED 



Prepared under the supervision and direction of the 
Code Commissioner and the Committee on Statutory 
Laws of the General Assembly of South Carolina 



VOLUME 6 



4^- Co <f^ 



THE MICHIE COMPANY 
Charlottesville, Va. 

THE LAWYERS CO-OPERATIVE PUBLISHING CO. 
Rochester, N. Y. 

1952 



■;a 



Copyright 1952 

by 

The State of South Carolina 



COLEMAN KARESH LAWLIBRAlft 
University of South Carolina 



Table of Contents 



VOLUME 6 



Title 59. 
Public Works and Certain Public Authorities. 

Chapter Page 

1. South Carolina Public Service Authority, §§ 59-1 to 59-14 1 

1.1. Clark's Hill Authority, §§ 59-91 to 59-93 15 

2. Agreements with United States About Rural Rehabilitation, etc., 

Projects, §§ 59-101 to 59-109 16 

3. Municipal Public Works. §§ 59-151 to 59-573 18 

4. Districts for Certain Public 'Works, §§ 59-601 to 59-625 70 

5. The Revenue Bond Refinancing Act of 1937, §§ 59-651 to 59-682 ... 76 

Title 60. 
Registration and Recordation. 

1. Registers of Mesne Conveyances, §§ 60-1 to 60-8 89 

2. Recording Generally, §§ 60-51 to 60-69 91 

3. When Recordation Essential to Validity, §§ 60-101 to 60-109 97 

4. Indexing and Filing, §§60-151 to 60-161 106 

5. Plats, Blue Prints, Photostatic Copies, etc., §§ 60-201 to 60-209 109 

6. Deeds of Railroads, §§ 60-251 to 60-256 Ill 

7. Chattel Mortgages, §§ 60-301 to 60-308 114 

8. Marketing Contracts, §§ 60-351 to 60-356 116 

9. Veterans' Discharges, §§ 60-401 to 60-409 118 

Title 61. 
Retirement Systems. 

1. South Carolina Retirement System. §§ 61-1 to 61-202 121 

2. Retirement of Supreme Court Justices and Circuit Court Judges, 

§§ 61-251 to 61-258 149 

3. Insurance and Annuity Benefits of Peace Officers, §§ 61-301 to 61-325 151 

4. Firemen's Pension Funds in Certain Cities, §§ 61-351 to 61-437 160 

5. Teacher's Retirement Funds, §§ 61-451 to 61-557 175 

6. Miscellaneous Local Provisions, §§ 61-601 to 61-602 190 

iii 



iv Code of Laws of South Carolina 

Title 62. 
Securities. 

Chapter Page 

1. General Provisions, §§ 62-1 to 62-7 191 

2. Exempt Securities and Exempt Transactions, §§ 62-51 to 62-54 194 

3. Registration of Securities, §§ 62-101 to 62-121 198 

4. Dealers and Salesmen, §§ 62-151 to 62-165 207 

5. Advertising, §§ 62-201 to 62-203 210 

6. Appeals from Commissioner's Orders, §§ 62-251 to 62-255 212 

7. Enforcement, Remedies, etc., §§ 62-301 to 62-317 213 

Title 63. 
Soil Conservation and Improvement. 

1. Federal Conservation Act, §§ 63-1 to 63-2 219 

2. Soil Conservation Districts Law, §§63-51 to 63-167 220 

3. Local Provisions, §§ 63-201 to 63-471 247 

Title 64. 
Sundays, Holidays and Other Special Days. 

1. Sundays, §§ 64-1 to 64-6 277 

2. Blank 281 

3. Special Days, §§ 64-101 to 64-105 281 

4. Legal Holidays, §§ 64-151 to 64-158 282 

Title 65. 
Taxation. 

1. General Provisions, §§ 65-1 to 65-7 286 

2. South Carolina Tax Commission, §§ 65-51 to 65-72 289 

3. Tax Board of Review, §§ 65-101 to 65-111 296 

4. Poll Tax, §§ 65-151 to 65-160 299 

5. Income Tax Act of 1926, §§ 65-201 to 65-367 302 

6. Income Tax on Banks, §§ 65-401 to 65-406 333 

7. Inheritance Tax, §§ 65-451 to 65-529 334 

8. Estate Tax, §§ 65-551 to 65-553 353 

9. License Fees of Corporations, §§ 65-601 to 65-616 354 

10. Certain Stamp and Certain Business License Taxes, §§ 65-651 to 65- 

880 358 

11. Other Business License Taxes, §§ 65-901 to 65-993 407 

12. Gasoline Tax, §§ 65-1051 to 65-1142 418 

13. Tax on "Fuel," §§ 65-1201 to 65-1220 432 

14. Alcoholic Beverages, §§ 65-1251 to 65-1307 438 

15. Retail License, Sales and Use Taxes, §§ 65-1351 to 65-1480 446 

16. The Assessment of Property Taxes, §§ 65-1501 to 65-1927 473 



Table of Contents v 

Chapter p AG ] 

17. County Treasurers and the Collection of Taxes, §§65-1951 to 65- 

2061 585 

18. Tax Collectors, §§ 65-2101 to 65-2635 (,11 

19. Erroneous Assessments and Payments, §§ 65-2651 to 65-2685 683 

20. Enforced Collection of Taxes, §§ 65-2701 to 65-2868 692 

21. Forfeited Lands, §§ 65-2901 to 65-3262 733 

22. Suits to Clear Tax Titles, §§ 65-3301 to 65-3306 774 

23. Local Provisions, §§ 65-3351 to 65-3654 775 

Title 66. 
Trade and Commerce. 

1. General Provisions, §§ 66-1 to 66-7 805 

2. Trusts, Monopolies and Unfair Competition, §§ 66-51 to 66-116 .... 808 

3. Weights and Measures, §§ 66-151 to 66-165 818 

4. Labels, Trademarks, etc, §§ 66-201 to 66-245 824 

5. Containers and Grades, §§ 66-301 to 66-364 834 

6. Gasoline, Liquefied Petroleum Gas, Lubricating Oils, etc., §§ 66-401 

to 66-467 844 

7. Electric Storage Batteries, §§ 66-501 to 66-508 854 

8. Fireworks, §§ 66-551 to 66-557 856 

9. Eggs and Baby Chicks, §§ 66-601 to 66-604 857 

Title 67. 
Trusts and Fiduciaries. 

1. Trust Estates, §§ 67-1 to 67-10 859 

2. Trustees, §§ 67-50 to 67-57.2 863 

3. Fiduciaries Generally, §§ 67-58 to 67-67 867 

Title 68. 
Unemployment Compensation. 

1. General Provisions, §§ 68-1 to 68-38 873 

2. Emplovment Security Commission, §§ 68-51 to 68-79 887 

3. Benefits, §§68-101 to 68-115 896 

4. Claims for Benefits, §§ 68-151 to 68-21 1 903 

5. Employer's Coverage, §§ 68-251 to 68-254 916 

6. Funds, §§ 68-301 to 68-337 918 

7. Protection of Rights and Benefits, §§ 68-351 to 68-353 925 

8. Violations, Penalties and Liabilities, §§ 68-401 to 68-404 926 



vi Code of Laws of South Carolina 

Title 69. 
Warehouses. 

Chapter Page 

1. Warehouses Generally, §§ 69-1 to 69-51 929 

2. State Warehouse System, §§ 69-101 to 69-135 937 

3. Uniform Warehouse Receipts Act, §§ 69-151 to 69-246 944 

Title 70. 
Waters and Watercourses. 

1. General Provisions, §§ 70-1 to 70-8 961 

2. Savannah River Navigation Commission, §§ 70-51 to 70-59 965 

3. Water Pollution, §§ 70-101 to 70-139 967 

4. Watercourses and Cuts Generally, §§ 70-163 to 70-204 979 

5. Certain Waterways, §§ 70-251 to 70-287 985 

6. Local Provisions, §§ 70-301 to 70-321 995 

Title 71. 
Welfare. 

1. Grants of Monetary Assistance, §§ 71-1 to 71-134 997 

2. Poorhouses and Farms and Maintenance of the Poor Generally, 

§§ 71-150 to 71-167 .'. 1016 

3. Children's Bureau, §§ 71-201 to 71-21 1 1021 

4. Destitute, Delinquent, etc.. Children, §§ 71-251 to 71-264 1023 

5. Local Provisions, §§ 71-301 to 71-388 1027 

Title 72. 
Workmen's Compensation. 

1. General Provisions, §§ 72-1 to 72-22 1041 

2. Industrial Commission, §§ 72-51 to 72-73 1055 

3. Application and Effect of Title, §§ 72-101 to 72-132 1061 

4. Compensation and Payment Thereof, §§ 72-151 to 72-191 1073 

5. Occupational Diseases, §§ 72-251 to 72-269 1093 

6. Notice of Accident ; Filing' Claims ; Medical Attention and Examina- 

tion, §§ 72-301 to 72-307 1099 

7. Procedure in Connection with Awards, §§ 72-351 to 72-359 1104 

8. Insurance and Self-Insurance, §§ 72-401 to 72-426 1113 

9. State Workmen's Compensation Fund. §§ 72-451 to 72-460 1 120 

10. Reports and Records, §§ 72-501 to 72-504 1123 



CODE OF LAWS OF SOUTH CAROLINA 

1952 

Title 59. 
Public Works and Certain Public Authorities.* 

Chap. 1. South Carolina Public Service Authority, §§ 59-1 to 59-14. 
1.1. Clark's Hill Authority, §§ 59-91 to 59-93. 

2. Agreements with United States About Rural Rehabilitation, etc., 

Projects, §§ 59-101 to 59-109. 

3. Municipal Public Works, §§ 59-151 to 59-573. 

4. Districts for Certain Public Works, §§ 59-601 to 59-625. 

5. The Revenue Bond Refinancing Act of 1937, §§ 59-651 to 59-682. 



CHAPTER 1. 
South Carolina Public Service Authority. 



Sec. 
59-1. 
59-2. 
59-3. 
59-4. 

59-5. 

59-6. 



59-7. 



Created; offices. 

Directors; advisory board. 

Powers. 

Default of obligations; remedies; re- 
ceiver. 

Acquire property; procedure. 

Duties and powers of directors; au- 
thority after organizing proceed 
with improvement and development 
of Santee-Cooper-Congaree Rivers 
project. 

Use of the facilities and operation 
of the business of the authority. 



Sec. 

59-8. Purpose; declaration of public inter- 
est; property and securities non- 
taxable; sale of electrical energy; 
make certain payments in lieu of 
taxes. 

59-9. Net earnings; use. 

59-10. Labor; materials; purchases. 

59-11. Credit and taxing power of the State 
and its subdivisions not involved; 
not liable for payment of securities. 

59-12. State and its subdivisions never levy 
taxes or appropriate for project. 

59-13. Amendments; effect. 

59-14. Authority to construct Santee-Cooper 
project. 



§ 59-1. Created ; offices. 

There is hereby created a body corporate and politic to be known as the 
South Carolina Public Service Authority (herein called the "public service 



* As to provisions for regulation of electricity in general, see Title 24. As to right of 
eminent domain generally, see Title 25. As to municipal corporations in general, see Title 
47. As to regulation of public service companies in general, see Title 58. As to sale of elec- 
tric power controlled by State, see §§ 24-201 to 24-206. As to State Rural Electrification 
Authority Act, see §§ 24-301 to 24-328. As to Orangeburg-Aiken Hydro-Electric Commis- 
sion, see §§ 24-401 to 24-417. As to Greenwood County electric power commission, see 
§§24-551 to 24-562. As to no permit to dig on highways being required of municipality 
which owns waterworks or sewerage outside its limits, see § 33-457. As to franchises for 
bus companies in certain cities, see § 47-569. As to construction and operation of water 
system, see § 51-243. As to control of water line from West Columbia to airport in 
Lexington County, see § 14-2726. 

[6SCCc.de] — I 1 



§ 59-2 



Code of Laws of South Carolina 



§59-2 



authority"), with a principal office in the town of Moncks Comer near the 
Santee-Cooper power dam and navigation locks in Berkeley County, and with 
such branch offices in the State of South Carolina as the directors may deter- 
mine. 
1942 Code § 8555-11 ; 1934 (38) 1507; 1944 (43) 1430. 



Cross reference. — As to temporary license 
to fish in waters of the Public Service Au- 
thority, see § 28-555. 

Constitutionality of sections of this chap- 
ter was upheld. — See Clarke v. South Caro- 
lina Public Service Authority, 177 S. C. 427, 
181 S. E. 481 (1935). 

The South Carolina Public Service Au- 
thority is a public corporation in the nature 
of a quasi-municipal corporation, exercis- 
ing certain governmental functions as an 
agency of this State. Rice Hope Plantation 
v. South Carolina Public Service Authority, 
216 S. C. 500. 59 S. E. (2d) 132 (1950), quot- 
ing Creech v. South Carolina Public Service 
Authority, 200 S. C. 127, 20 S. E. (2d) 645 
(1942). 

And was created for the convenient ac- 
complishment of what must be regarded as 
an important governmental function. — Rice 
Hope Plantation v. South Carolina Public 
Service Authority, 216 S. C. 500, 59 S. E. 
(2d) 132 (1950), quoting Dillon Catfish 
Drainage District v. Bank of Dillon, 143 S. 
C. 178, 141 S. E. 274 (1928). 

It is a citizen of this State. — Under the 
provisions of this chapter, the Authority 
herein created is not a department of the 
State, is not entitled to the State's immunity 
from suit, but is a citizen of this State and 
in litigation with a nonresident is subject to 
the laws of the United States providing 
for the removal of causes to a Federal 
court upon the ground of diversity of citizen- 
ship. South Carolina Public Service Au- 
thority v. New York Cas. Co., 74 F. Supp. 
831 (1947). 



And it is not an electrical utility as de- 
fined by § 24-1 and therefore not subject to 
the jurisdiction of the Public Service Com- 
mission. South Carolina Elec. & Gas. Co. 
v. South Carolina Public Service Authoritv, 

215 S. C. 193, 54 S. E. (2d) 777 (1949). 
Federal Power Commission enforces its 

license. — The Public Service Authority hav- 
ing obtained a license from the Federal 
Power Commission, the enforcement of the 
license is a matter exclusively for the Fed- 
eral Power Commission. Conner v. South 
Carolina Public Service Authority, 91 F. 
Supp. 262 (1950). 

Liability to riparian owner same as if 
United States were involved. — The liability 
of the Authority to a riparian owner for 
damages, if any, alleged to have been sus- 
tained by reason of the diversion of waters 
from the Santee River to the Cooper River, 
is substantially the same as that which 
would be applicable if the United States 
were involved. Rice Hope Plantation v. 
South Carolina Public Service Authority, 

216 S. C. 500, 59 S. E. (2d) 132 (1950). 
Directors from different sections of State. 

—See note to § 59-2. 

For general discussion of chapter, see 
Oakland Club v. South Carolina Public 
Service Authority, 30 F. Supp. 334 (1940), 
affirmed in 110 F. (2d) 84 (1940). 

Cited in Carolina Power & Light Co. v. 
South Carolina Public Service Authoritv, 
94 F. (2d) 520 (193S), cert denied 304 
U. S. 578, 58 S. Ct. 1048, 1049, 82 L. Ed. 
1541 (1938). 



§ 59-2. Directors; advisory board. 

Such public service authority shall consist of a board of seven directors to 
be appointed by the Governor, one from each congressional district of the 
State, and one from the State at large who shall be chairman. Each director 
shall serve for a term of seven years, and until his successor has been ap- 
pointed and qualified, except that the initial terms of the directors shall be 
respectively one, two, three, four, five, six and seven years. The initial term 
of the chairman shall be seven years and the board of directors shall determine 
by lot the initial terms of the other directors. At the expiration of the term 
of each director and of each succeeding director the Governor shall appoint a 
successor, who shall hold office for a term of seven years, or until his successor 
has been appointed and qualified. In the event of a vacancy occurring in the 

2 [6SCCode] 



§59-3 Public Works and Certain Public Authorities §59-3 

office of a director by death, resignation or otherwise, the Governor Miall ap- 
point his successor who shall hold office for the unexpired term. No director 
shall receive a salary for services as director until the authority is in funds, 
but each director shall be paid his actual expenses in the performance of his 
duties hereunder, the same to be advanced from the contingent fund of the 
Governor until such time as the public service authority is in funds, at which 
time the contingent fund shall be reimbursed. After the public service author- 
ity is in funds, the compensation and expenses of each member of the board 
shall be paid from said funds, and the same shall be fixed by the advisory 
board hereinafter established. Members of the board of directors may be re- 
moved for cause by the advisory board or a majority thereof. No member 
of the General Assembly of the State of South Carolina shall be eligible for 
appointment as director of said public service authority during the term of his 
office. 

For the assistance of the board of directors of said public service authority, 
there is hereby established an advisory board to be known as the advisory 
board of the South Carolina public service authority, to be composed of the 
Governor of the State, the attorney general, the state treasurer, the comptroller 
general and the secretary of the state, as ex officio members, who shall serve 
without extra compensation other than necessary traveling expenses. Said 
advisory board shall perform any duties imposed on them under this chapter, 
and shall consult and advise with the board of directors on any and all mat- 
ters which by the board of directors may be referred to the advisory board. 
The board of directors shall make annual reports to the advisory board, which 
reports shall be submitted to the General Assembly by the Governor, in which 
full information as to all of the acts of said board of directors shall be given, 
together with financial statement and full information as to the work of the 
authority. The advisory board shall on July the 1st of each year, designate 
some reputable certified public accountant or accountants, resident in the 
State for the purpose of making a complete audit of the affairs of said author- 
ity, which said audit shall be filed with the annual report of the board of 
directors. 

1942 Code § 8555-12; 1934 (38) 1507. 

Directors from different sections of State. reasonable provision for having directors 

— The intention is easily discovered from from different sections of this State and the 

this chapter that the power generated by authority to establish branch offices. Creech 

the Pinopolis Dam would be sold not only v. South Carolina Public Service Authority, 

in the lower part of this State, but through- 200 S. C. 127, 20 S. E. (2d) 645 (1942). 
out its length and breadth. Hence, the very 

§ 59-3. Powers. 

The public service authority shall have power to develop the Cooper River, 
the Santee River, and the Congaree River in this State, as instrumentalities 
of intrastate, interstate and foreign commerce and navigation ; to produce, 
distribute and sell electric power ; to reclaim and drain swampy and flooded 
lands ; and to reforest the water sheds of rivers in this State : and shall also 
have all powers which may be necessary or convenient for the exercise of such 

3 



§ 59-3 Code of Laws of South Carolina § 59-3 

powers, including, without limiting the generality of the foregoing, the follow- 
ing powers : 

(1) To have perpetual succession as a corporation. 

(2) To sue and be sued. 

(3) To adopt, use and alter a corporate seal. 

(4) To acquire, purchase, hold, use, lease, mortgage, sell, transfer, and 
dispose of any property, real, personal or mixed, or any interest therein. 

(5) To build, construct, maintain and operate canals, dams, locks, aque- 
ducts, reservoirs, draw-spans, ditches, drains and roads, and to lay and con- 
struct any tunnels, penstocks, culverts, flumes, conduits, mains and other 
pipes necessary or useful in connection therewith. 

(6) To divert waters from the Santee River by means of a canal or canals, 
flume or flumes or otherwise, and to construct and maintain a dam of any 
height or size for the purpose of impounding said waters and to discharge 
the same into the Cooper River or otherwise. 

(7) To build, acquire, construct and maintain power houses and any and 
all structures, ways and means, necessary, useful or customarily used and 
employed in the manufacture, generation and distribution of water power, 
steam electric power, hydro-electric power and any and all other kinds of 
power, including power transmission lines, poles, telephone lines, substa- 
tions, transformers, and generally all things used or useful in the manufac- 
ture, distribution, purchase and sale of power generated by water, steam or 
otherwise. 

(8) To manufacture, produce, generate, transmit, distribute and sell water 
power, steam electric power, hydro-electric power or mechanical power within 
and without the State of South Carolina. 

(9) To reclaim and drain swampy and flooded lands. 

(10) To reforest the water sheds of the Cooper, Santee and Congaree Rivers 
and to prevent soil erosion and floods. 

(11) To make bylaws for the management and regulation of its affairs. 

(12) To appoint officers, agents, employees and servants, to prescribe 
their duties, and to fix their compensation. 

(13) To fix, alter, charge and collect tolls and other charges for the use 
of their facilities of, or for the services rendered by, or for any commodities 
furnished by, the public service authority at rates to be determined by it, 
such rates to be at least sufficient to provide for payment of all expenses 
of the public service authority, the conservation, maintenance and opera- 
tion of its facilities and properties, the payment of principal and interest 
on its notes, bonds and other evidences of indebtedness or obligation and 
to fulfill the terms and provisions of any agreements made with the pur- 
chasers or holders of any such notes, bonds or other evidences of indebted- 
ness or obligation. 

(14) To borrow money, make and issue negotiable notes, bonds and other 
evidences of indebtedness of the public service authority and to secure the 
payment of such obligations or any part thereof by mortgage, lien, pledge, 
or deed of trust, on all or any of its property, contracts, franchises or 

4 



§ 59-3 Public Works and Certain Public Authorities § 59-3 

revenues, and to make such agreements with the purchasers or holders of 
such notes, bonds, or other evidences of indebtedness, or with others in con- 
nection with any such notes, bonds or other evidences of indebtedness, 
whether issued or to be issued, as the public service authority shall deem 
advisable, and in general to provide for the security for said notes, bonds 
or other evidences of indebtedness and the rights of the holders thereof. 

(15) To endorse or otherwise guarantee the obligations of any corporation 
all of the voting stock of which the public service authority may own or acquire. 

(16) Without limitation of the foregoing to borrow money from the United 
States government or any corporation or agency created, designed or estab- 
lished by the United States. 

(17) To make contracts of every name and nature and to execute all in- 
struments necessary or convenient for the carrying on of its business. 

(18) To have power of eminent domain. 

(19) To mortgage, pledge, hypothecate or otherwise encumber all or any 
of the property, real, personal, or mixed, or facilities, or revenues of the 
public service authority as security for notes, bonds, evidences of indebted- 
ness or other obligations of the public service authority. 

(20) To do all acts and things necessary or convenient to carry out the 
powers granted to it by this chapter or any other law. 

(21) To investigate, study and consider all undeveloped power sites and 
navigation projects in the State and to acquire and/or develop the same as 
need may arise in the same manner as herein provided. Provided, always 
nevertheless; that said investigations, studies and considerations of said 
South Carolina public service authority herein created shall be limited to 
the Congaree River and its tributaries below the confluence of the Broad 
and Saluda Rivers and the Wateree tributary of the Santee River at and 
near a point at or near Camden, South Carolina. Provided, however, that 
the public service authority shall have no power at any time or in any 
manner to pledge the credit and/or the taxing power of the State or any of its 
political subdivisions, nor, shall any of its obligations or securities be deemed 
to be obligations of the State or of any of its political subdivisions ; nor 
shall the State be legally, equitably or morally liable for the payment of prin- 
cipal of and/or interest on such obligations or securities. The State of South 
Carolina does hereby pledge to and agree with any person, firm or corporation, 
the government of the United States and any corporation or agency created, 
designated or established by the United States, subscribing to or acquiring 
the notes, bonds, evidences of indebtedness or other obligations to be issued 
by the public service authority for the construction of any project, that the 
state will not alter or limit the rights hereby vested in the public service 
authority until the said notes, bonds, evidences of indebtedness or other obli- 
gations, together with the interest thereon, are fully met and discharged, 
provided, that nothing herein contained shall preclude such limitation or 
alteration if and when and after adequate provisions shall be made by law 
for the protection of those subscribing to or acquiring such notes, bonds, 
evidences of indebtedness or other obligations of the public service authority. 

5 



§ 59-3 Code of Laws of South Carolina § 59-3 

The State of South Carolina and/or any political subdivision shall in no way- 
be responsible for any debts or obligations contracted by or for the authority, 
and the board or directors of the authority, the advisory board, and/or the 
officers shall make no debt whatsoever for the payment of which the State 
and/or any political subdivision shall in any way be bound. It is intended 
that the project to be developed hereunder and any and all projects undertaken 
by the provisions of this chapter, shall be financed as self-liquidating projects 
and that the credit and taxing powers of the State, and/or its political sub- 
divisions shall never be pledged to pay said debts and obligations. 

Without limiting the generality of the foregoing, the public service author- 
ity shall have power and is hereby authorized from time to time to issue 
its negotiable bonds and to secure the payment of the same by mortgage, 
lien, pledge, or deed of trust, on or of all or any of its property, contracts, 
franchises or revenues. Said bonds shall be authorized by resolution of the 
board of directors and shall bear such date or dates, be in such forms, and 
contain such provisions, as the board of directors may determine. Any resolu- 
tion or resolutions authorizing any notes, bonds, or other evidences of indebted- 
ness may contain provisions, which shall be a party of the contract with the 
holders thereof, as to (a) the rates of tolls and other charges for use of the fa- 
cilities of, or for the services rendered by, or for the commodities furnished by, 
the public service authortiy, (b) the setting aside of reserves or sinking funds 
and the regulation and disposition thereof, (c) reserving the right to redeem 
the notes, bonds, or other evidences of indebtedness at such prices, not 
exceeding one hundred five per cent of the principal amount thereof and ac- 
crued interest, as may be provided, (d) limitations on the issuance of addi- 
tional bonds, (e) the terms and provisions of any mortgage or deed of trust 
securing the bonds or under which the same may be issued, and (f) any other 
or additional agreements with the holders of such notes, bonds or other evi- 
dences of indebtedness. 

The public service authority may enter into any mortgages, deeds of trust 
or other agreements with any bank or trust company or other person or 
persons in the United States having power to enter into the same, including 
the United States government or any agency or creature thereof, as security 
for the notes, bonds or other evidences of indebtedness and may transfer, 
convey, mortgage or pledge all or any of the property, contracts, franchises 
or revenues of the public service authority thereunder. Such mortgage, deed of 
trust or other agreement may contain such provisions as may be customary in 
such instruments or as the public service authority may authorize, including 
(but without limitation) provisions as to (a) the construction, operation, main- 
tenance and repair of the properties or facilities of the public service authority, 
(b) the application of funds and the safeguarding of funds on hand or on de- 
posit, (c) the rights and remedies of said trustee and the holders of the bonds, 
(d) possession of the mortgaged properties, and (e) the terms and provisions 
of the bonds, and may also provide for a franchise for operation of the prop- 
erty and business of the public service authority, or any part thereof, to any 
person, firm or corporation, including the United States government, or any 

6 



§59-3 



Public Works and Certain Pi blu Authoritii 



§59-3 



agency thereof, acquiring the mortgaged property or any part thereof upon 
foreclosure for a period of not to exceed twenty years from the date of such 
acquisition. 

The powers herein conferred upon the hoard of directors shall not he con- 
strued to give the board of directors the power to sell, except by way of mort- 
gage or deed of trust, all of the physical property of the authority, but the 
board of directors may sell any surplus property which it may acquire and 
which said board of directors shall deem not to be necessary for the purpose 
of the development. 

1942 Code § 8555-13; 1934 (38) 1507. 



Powers to be strictly construed. — The 
powers conferred on the Public Service 
Authority are to be strictly construed, and 
any fair, substantial and reasonable doubt 
concerning the existence of any power or 
any ambiguity under the statute upon which 
the assertion of such power rests is to be 
resolved against the corporation and the 
power denied. Creech v. South Carolina 
Public Service Authority, 200 S. C. 127, 20 
S. E. (2d) 645 (1942). 

Therefore the power "to sue and be sued" 
cannot reasonably be construed to author- 
ize an action ex delicto. Rice Hope Planta- 
tion v. South Carolina Public Service Au- 
thority, 216 S. C. 500, 59 S. E. (2d) 132 
(1950). 

The power to purchase gas plants and to 
buy and operate a large bus transportation 
business is not bestowed on the Authority 
and is contrary to the general purpose of 
this chapter, which is the development and 
conservation of the natural resources of 
the State within territorial limits. Creech 
v. South Carolina Public Service Authority, 
200 S. C. 127, 20 S. E. (2d) 645 (1942). 

But this section does not bar the Author- 
ity from maintaining an electric transmis- 
sion lines project. South Carolina Elec. & 
Gas Co. v. South Carolina Public Service 
Authority, 215 S. C. 193, 55 S. E. (2d) 
777 (1949). 

And a plan to maintain proposed trans- 
mission lines and provide service upon the 
debt for the construction of them is not a 
violation. South Carolina Elec. & Gas Co. 
v. South Carolina Public Service Authority, 
215 S. C. 193, 54 S. E. (2d) 777 (1949). 

Word "develop" governs section. — The 
purport of these provisions is governed and 
controlled by the word "develop," which 
cannot logically include something which 
is already developed, completed and in op- 
eration. Nor can the word "produce," in 
the phrase, "produce, distribute and sell 
electric power," carry the meaning of pur- 
chase or acquisition by purchase. Creech 



v. South Carolina Public Service Authority, 
200 S. C. 127, 20 S. E. (2d) 645 (1942). 

And acquisition of existing utilities was 
not intended. — The words of subdivs. (4) 
and (7) in their natural context and in their 
relation to the whole chapter are reasonably 
referable and conclusively so as to the power 
to develop and construct by bringing into 
being new facilities, rather than the power 
to buy or acquire great power plants long 
since engaged in the production of electric 
energy. It was never the intention of the 
legislature that the Authority should be 
given the power to buy an existing utility 
system in order to produce, distribute and 
sell electric power. Creech v. South Caro- 
lina Public Service Authority, 200 S. C. 
127, 20 S. E. (2d) 645 (1942). 

Subdivisions (8) and (20) have no rela 
tion to the acquisition of electric utilities. 
They deal solely with the dominant purpose 
of the chapter, that is, the development of 
the natural resources of this State. Creech 
v. South Carolina Public Service Authority, 
200 S. C. 127, 20 S. E. (2d) 645 (1942). 

Subdivision (21) delegates the power to 
acquire or develop undeveloped water sites 
and navigation projects in this State and 
specifically limits the area within which 
this acquirement or development must be 
confined. Creech v. South Carolina Public 
Service Authority, 200 S. C. 127, 20 S. E. 
(2d) 645 (1942). 

Where it was contended that the limita- 
tion of subdiv. (21) relates only to "un- 
developed power sites and navigation proj- 
ects" and does not apply to the outri lit 
purchase of companies operating power 
plants already developed, it was held that 
the whole legislative history of the enabling 
act repels the conclusion that such a pro- 
posed action of the Authority comes within 
the purview of the statute or was contem- 
plated at the time of its passage as a legiti- 
mate exercise of corporate power. Creech 
v. South Carolina Public Service Authority, 
200 S. C. 127, 20 S. E. (2d) 645 (1942). 



§ 59-4 Code of Laws of South Carolina § 59-4 

Quoted in South Carolina Elec. & Gas Cited in Oakland Club v. South Carolina 

Co. v. South Carolina Public Service Au- Public Service Authority, 110 F. (2d) 84 

thority, 215 S. C. 193, 54 S. E. (2d) 777 (1940). 
(1949). 

§ 59-4. Default of obligations ; remedies ; receiver. 

Any resolution authorizing any notes, bonds or other evidences of indebted- 
ness, and any mortgage or trust indenture or other agreement entered into 
pursuant thereto, may, whether or not any such obligations are or are to be 
secured by mortgage, provide that in the event that (a) default shall be made 
in the payment of the interest on any or all such obligations when and as the 
same shall become due and payable, (b) default shall be made in the pay- 
ment of the principal of any or all such obligations when and as the same 
shall become due and payable, whether at the maturity thereof, by call for 
redemption or otherwise, or (c) default shall be made in the performance of 
any agreement made with the purchasers or successive holders of any such 
obligations, and such default shall have continued such period, if any, as 
may be prescribed by said resolution or said mortgage, trust indenture or 
other agreement in respect thereof, the trustees under such mortgage, trust 
indenture or other agreement entered into in respect of the obligations au- 
thorized thereby (or, if there shall be no such mortgage, trust indenture 
or other agreement, or trustee thereunder, a trustee appointed in the manner 
provided in such resolution or resolutions by the holders of not less than 
twenty-five per centum in aggregate principal amount of the obligations 
authorized thereby and at the time outstanding) may, and upon the written 
request of the holders of twenty-five per centum in aggregate principal 
amount of the obligations authorized by such resolution or resolutions at 
the time outstanding, shall, in his or its own name, but for the equal and pro- 
portionate benefit of the holders of all of such obligations, and with or without 
having possession thereof: 

(1) By mandamus or other suit, action or proceeding at law or in equity, 
enforce all rights of the holders of such obligations ; 

(2) Bring suit upon such obligations, the coupons appurtenant thereto, or 
both; 

(3) By action or suit in equity, require the authority to account as if it were 
the trustee of an express trust for the holders of such obligations ; 

(4) By action or suit in equity, enjoin any acts or things which may be 
unlawful or in violation of the rights of the holders of such obligations ; 

(5) After such notice to the authority as such resolution may provide, de- 
clare the principal of all such obligations due and payable, and if all defaults 
shall have been made good, then with the written consent of the holder or 
holders of twenty-five per centum in aggregate principal amount of such ob- 
ligations at the time outstanding, annul such declaration and its consequences ; 

Provided, hozvever, that the holders of a majority in principal amount of such 
obligations at the time outstanding shall, by instrument or instruments in 
writing delivered to such trustee, have the right to direct and control any and 
all action taken or to be taken by such trustee under this section. 

8 



§ 59-5 Public Works and Certain Public Authorities § 59-5 

Any such resolution, mortgage, indenture or agreement may likewise pro- 
vide that in an)' such suit, action or proceeding - , any such trustee, whether or 
not all of such obligations have been declared due and payable, and with or 
without possession of any thereof, shall be entitled as of right to the appoint- 
ment of a receiver who may enter upon and take possession of all or any part 
of the properties of the authority and operate and maintain the same, and fix, 
collect and receive rates, tolls, and charges sufficient to provide revenues 
to pay the items specified in clause 13 of § 59-3 hereof and all costs and dis- 
bursements of such suit, action or proceeding-, such revenues to be applied in 
conformity with the provisions of this chapter and the resolution or resolutions 
authorizing such obligations, or the mortgage, indenture or other agreement 
pursuant to which the same shall have been issued. In any suit, action or 
proceeding by any such trustee, the reasonable fees, counsel fees and expenses 
of such trustee and of the receiver or receivers, if any, shall constitute taxable 
disbursements, and all costs and disbursements allowed by the court shall be 
a first charge upon any revenues pledged to secure the payment of such ob- 
ligations. The circuit court of the county of Richland, and the circuit court 
of any other county wherein is located the principal office or any branch office 
of the authority or wherein any of its property or facilities may be located, or 
any of such courts, shall have jurisdiction of any such suit, action or proceeding 
by any such trustee, and of all property involved therein. In addition to the 
powers hereinafter specifically provided for, each such trustee shall have and 
possess all powers necessary or appropriate for the exercise of any thereof, or 
necessary or appropriate for the general representation of the holders of such 
obligations in the enforcement of their right or rights. 

None of the remedies provided for in this section shall be deemed to be 
exclusive, and any one or more than one or all thereof shall be available in 
connection with any default and with any subsequent default. 

1942 Code § 8555-14; 1939 (41) 95. 

§ 59-5. Acquire property; procedure. 

The public service authority shall have the right to acquire by purchase, 
gift, condemnation or in any other manner, any lands, waters, water rights, 
riparian rights, flowage rights, easements, licenses, franchises, engineering 
data, construction plans or estimates prepared for the development of the 
Cooper River and Santee River or any other real or personal property necessary 
or useful in carrying out any of its purposes or exercising any of its powers; 
but provided, hozvever, that before the board of directors can acquire and pay 
for, without condemnation as herein provided, any plans, specifications, fran- 
chises, or any kind of property of whatsoever nature, belonging to or to belong 
to any private corporation heretofore chartered by this State or any other 
State for the purpose of developing the Santee-Cooper project, a full report 
of said proposed purchase shall be submitted in writing to the advisory board, 
which board shall order a public hearing on said proposed purchase and due 
notice of said hearing shall be given by advertisement to be published in at 
least three daily papers published in the State twice each week for two con- 

9 



§ 59-6 Code of Laws of South Carolina § 59-6 

secutive weeks. The said advisory board shall carefully investigate said pro- 
posed purchase, and shall file its report in writing with the secretary of state 
and the board of directors of the public service authority. If said report 
shall recommend a price for the proposed purchase, the board of directors may 
forthwith enter into a contract to purchase the same; if said report shall dis- 
approve said proposed purchase, the board of directors may submit any amend- 
ed proposed agreement, which shall be heard by the advisory board in the same 
manner, or shall proceed with condemnation proceedings as herein provided 
for; the price to be paid to any private corporation for any of its property shall 
be subject to the approval of the original purchaser of the first notes, bonds or 
other evidences of indebtedness issued under this chapter. The public service 
authority shall have the right, power and privilege to condemn and take by 
eminent domain any or all of the rights and property which under the terms of 
this chapter it is empowered to acquire. Any such condemnation proceedings 
shall be instituted and prosecuted in the manner provided for and authorized in 
article 8 of chapter 10 of Title 58, providing for securing to railroads a right of 
way in this State. Without limiting the generality of the foregoing, the public 
service authority shall also have all the rights, powers and privileges conferred 
upon telegraph and telephone companies under §§ 58-301 to 58-313 and also 
the rights, powers and privileges conferred upon water power and reservoir 
companies under §§ 70-171 to 70-177. 
1942 Code § 8555-15; 1934 (38) 1507. 

Waters within jurisdiction of State are without providing compensation to riparian 

part of public domain. — The waters of. the proprietors injuriously affected. Such di- 

ocean and its bays and of public water- version is not a taking of private property 

courses and lakes, so far as they lie within by eminent domain, but a disposition by the 

the jurisdiction of a state, are part of the public of public property. Rice Hope 

pubic domain and the State may authorize Plantation v. South Carolina Public Serv- 

the diversion of such waters for any pur- ice Authority, 216 S. C. 500, 59 S. E. (2d) 

pose it deems advantageous to the public, 132 (1950). 

§ 59-6. Duties and powers of directors ; authority after organizing proceed with 
improvement and development of Santee-Cooper-Congaree Rivers 
project. 
The powers of the public service authority shall be exercised by the board 
of directors, with the exception of such duties as this chapter shall impose 
upon the advisory board. Four directors shall constitute a quorum of the 
board for the purpose of organizing the public service authority and conduct- 
ing the business thereof and for all other purposes and all action may be taken 
by vote of a majority of directors present unless in any case the bylaws shall 
require a larger number. The board of directors shall have full authority 
to manage the property and business of the public service authority, and to 
prescribe, amend and repeal bylaws, rules and regulations governing the man- 
ner in which the general business of the public service authority may be con- 
ducted and the powers granted to it may be exercised and embodied. The 
board of directors shall fix and determine the number of officers, agents, 
employees and servants of the public service authority and their respective 
compensation and duties, and may delegate to one or more of their number, or 

10 



§ 59-7 Public Works and Certain Public Authorities § 59-7 

to one or more of said officers, agents, employees or servants, such powers 
and duties as it may deem proper. Each director shall give hond for the faith- 
ful performance of his duties as such director in the penal sum of at least ten 
thousand ($10,000.00) dollars, the premium for the first bonds to be paid by 
the Governor from his contingent fund to be reimbursed when the authority is 
in funds, and all subsequent premiums to be paid from funds of the authority. 
The board of directors shall require similar bonds in such amounts as they 
may determine from any or all officers, agents and employees in position of 
responsibility or trust. The position of director of said public service au- 
thority is not a public office, and the state shall in no wise be responsible for 
the acts of said directors, but each director and his surety and the public 
service authority shall be responsible for all acts of said director in connection 
with the functions herein provided for. 

Forthwith upon the appointment and organization of the public service au- 
thority it shall proceed with the improvement and development of the Cooper 
River, the Santee River, the Congaree River and their tributaries up-stream 
to the confluence of the Broad and Saluda Rivers and up-stream on the Watcrce 
River to a point at or near Camden for the aid and benefit of commerce and 
navigation, flood control and drainage, and for the development of the hydro- 
electric power inherent therein. The authority shall investigate other power 
and/or navigation projects in the State and shall have power to acquire or 
develop desirable ones as early as practicable; provided, however, that nothing 
in this chapter shall be construed to absorb, supersede, limit or obstruct any 
applications now pending and especially the proposed Greenwood County 
project on the Saluda River near Buzzards Roost by any political subdivision 
or subdivisions of the State before the federal emergency administration of 
public works or other agency of, or created, designated or established by, the 
United States. 

1942 Code § 8555-16; 1934 (38) 1507. 

Limitations on Authority. — The manifest Public Service Authority, 200 S. C. 127, 20 

intention of this section, taken in connec- S. E. (2d) 645 (19421. 

tion with the entire chapter, plainly confines The "project" referred to clearly means 

and limits the Authority either to develop new construction or new facilities in the 

a power or navigation project or else to ac- development of natural resources. Creech 

quire such a project already planned but v. South Carolina Public Service Authority, 

incomplete. It does not include operating 200 S. C. 127, 20 S. E. (2d) 645 (1942). 
a utility plant. Creech v. South Carolina 

§ 59-7. Use of the facilities and operation of the business of the authority. 

The use of the facilities of the public service authority and the operation of 
its business shall be subject to the rules and regulations from time to time 
adopted by the public service authority ; provided, however, that the public 
service authority shall not be authorized to do anything which will impair 
the security of the holders of the notes, bonds or other evidences of indebted- 
ness of the public service authority or violate any agreement with them or for 
their benefit. 

1942 Code § 8555-17; 1934 (38) 1507. 

11 



§ 59-8 Code of Laws of South Carolina § 59-8 

§ 59-8. Purpose ; declaration of public interest ; property and securities non- 
taxable ; sale of electrical energy ; make certain payments in lieu of 
taxes. 

The public service authority is created primarily for the purpose of develop- 
ing the Cooper River, the Santee River, the Congaree River and their tribu-, 
taries upstream to the confluence of the Broad and Saluda Rivers and upstream 
on the Wateree River to a point at or near Camden and other similar projects 
as instrumentalities of intrastate, interstate and foreign commerce and navi- 
gation ; of reclaiming waste lands by the elimination or control of flood waters, 
reforesting the water sheds of such rivers and improving public health con- 
ditions in those areas. It is hereby found and declared that the project au- 
thorized by this chapter is for the aid of intrastate, interstate and foreign 
commerce and navigation, and that such aid and improvement of intrastate, 
interstate and foreign commerce and navigation and the development, sale 
and distribution of hydro-electric power is in all respects for the benefit of all 
the people of the State of South Carolina, for the improvement of their health 
and welfare and material prosperity, and is a public purpose, and being a cor- 
poration owned completely by the people of South Carolina and operated by 
said authority for the benefit of all the people of the State, the public service 
authority shall be required to pay no taxes or assessments upon any of the 
property acquired by it for this project or upon its activities in the operation 
and maintenance thereof, except as hereinafter provided. The securities and 
other obligations issued by the public service authority, their transfer and the 
income therefrom shall at all times be free from taxation ; but, provided, 
however, unless otherwise provided in any contract with such agency of the 
United States Government as shall assist in financing the projects herein con- 
templated or any other agency from which the funds ma)' be secured, all elec- 
trical energy developed by the authority shall be sold at rates in the deter- 
mination of which the taxes which said project or projects would pay if pri- 
vately owned, to the extent hereinafter provided, as well as other rate-making 
factors properly entering into the manufacture and distribution of said energy 
shall be considered. After payment of necessary operating expenses and all 
annual debt requirements on bonds, notes or other obligations at any time out- 
standing and the discharge of all annual obligations arising under finance 
agreements with the United States or any agency or corporation thereof and 
indentures or other instruments under which bonds have been, or may be, 
issued, the South Carolina public service authority shall pay annually to the 
various counties of the State a sum of money equivalent to the amount paid 
for taxes on properties at the time of their acquisition by the. authority, ac- 
quired, or hereafter to be acquired, in said counties and South Carolina public 
service authority shall likewise pay to all municipalities and school districts 
in said counties in which the said authority has acquired, or may hereafter 
acquire, properties a sum of money equivalent to the amount paid for taxes 
to said school districts and municipalities on said properties at the time of 
their acquisition by the authority; and no other taxes shall be considered in 
the fixing of the rates of said authority. From the funds to be paid hereunder 

12 



§ 59-9 Public Works and Certain Public Authorities § 59-10 

said counties, school districts and municipalities shall annually apply a sum 
sufficient for the debt requirements for bonds and other obligations of said 
counties, school districts and municipalities for which said properties were 
taxes at the time of their acquisition by the authority, with the remainder of 
said funds to be expended in accordance with law. 
1942 Code § 8555-18; 1934 (38) 1507; 1941 (42) 365. 

The primary purpose of the authority is conservation of the natural resources of the 

the construction, development and operation State within territorial limits. Creech v. 

of a hydroelectric and navigation project. South Carolina Public Service Authority, 

Alewine v. Tobin Quarries, 206 S. C. 103, 200 S. C. 127, 20 S. E. (2d) 645 (1942). 

33 S. E. (2d) 81 (1<)45). Cited in Carolina Power & Light Co. v. 

The power to purchase gas plants and to South Carolina Public Service Authority, 

buy and operate a large bus transportation 20 F. Supp. 854 (1937), affirmed in 94 F. 

business is not bestowed on the Authority (2d) 520 (1938), cert den. 304 U. S. 578, 

and is contrary to the general purpose of 58 S. Ct. 104S, 1049, 82 L Ed. 1541 (1938). 
this chapter, which is the development and 

§ 59-9. Net earnings ; use. 

The South Carolina public service authority is a corporation, completely 
owned by and to be operated for the benefit of the people of South Carolina, 
and any and all net earnings thereof not necessary or desirable for the prudent 
conduct and operation of its business or to pay the principal of and interest 
on its bonds, notes or other evidences of indebtedness or other obligations or 
to fulfill the terms and provisions of any agreements made with the pur- 
chasers or holders thereof or others shall be paid over semi-annually to the 
state treasurer for the general funds of the State and shall be used to reduce 
the tax burdens on the people of this State. 

1942 Code § 8555-19; 1934 (38) 1507. 

Quoted in Rice Hope Plantation v. South Stated in South Carolina Elec. & Gas Co. 

Carolina Public Service Authority, 216 S. v. South Carolina Public Service Authority, 
C. 500, 59 S. E. (2d) 132 (1950). 215 S. C. 193, 54 S. E. (2d) 777 (1949). 

§ 59-10. Labor; materials; purchases. 

As far as may be practicable and not in conflict with any statute of the 
United States or the rules or regulations of any agency thereof which may 
assist in financing any project undertaken pursuant to this chapter, the public 
service authority shall use and give preference to South Carolina workmen and 
South Carolina materials. As far as may be practicable, and not to conflict 
with any rules of the United States government or any agency thereof which 
may assist in financing the development herein proposed, the public service 
authority shall use South Carolina materials and shall make purchases within 
the State where possible. As far as may be practicable, the labor to be em- 
ployed on the development herein provided for shall be resident South Carolina 
workmen, and the same shall be allocated to each county in the State ratably, 
as the need for employment may exist, and, as far as may be practicable, as 
reflected by the rolls of the unemployed in the various federal reemployment 
bureaus in each county in South Carolina. 

1942 Code § 8555-20; 1934 (38) 1507. 

13 



§59-11 Code of Laws of South Carolina §59-14 

§ 59-11. Credit and taxing power of the State and its subdivisions not involved; 
not liable for payment of securities. 

Nothing' contained in the provisions of this chapter shall, at any time or 
in any manner, involve the credit and taxing power of the State of South 
Carolina, or of any of its political subdivisions : nor shall any of the securities 
or other evidences of indebtedness authorized to be issued in and by this 
chapter ever be or constitute obligations of the State of South Carolina or of 
any of its political subdivisions ; nor shall the State of South Carolina or any 
of its political subdivisions ever be liable or responsible, in any way, for the 
payment of the principal or interest of or. on such security or other evidences 
of indebtedness. 

1942 Code § 8555-21; 1934 (38) 1507. 

Section only provides that project shall The governmental character of the func- 

be self-liquidating. — The fact that the credit tions of the Authority cannot be deemed 

of this State is not granted to the Authority impaired by this financial provision. Rice 

does not give it such separate corporate Hope Plantation v. South Carolina Public 

existence as to make it liable in an action Service Authority, 216 S. C. 500, 59 S. E. 

for tort since this provision of the statute (2d) 132 (1950). 

does no more than to provide that the Cited in Oakland Club v. South Carolina 

project shall be financed as self-liquidating. Public Service Authority, 110 F. (2d) 84 

Rice Hope Plantation v. South Carolina (1940). 
Public Service Authority, 216 S. C. 500, 59 
S. E. (2d) 132 (1950). 

§ 59-12. State and its subdivisions never levy taxes or appropriate for project. 

It is hereby declared that the State of South Carolina and any of its political 
subdivisions shall never levy any tax to pay any obligations incurred in build- 
ing this project or make any appropriation to carry on the work of developing 
the Santee-Cooper power project. 

1942 Code § 8555-22; 1934 (38) 1507. 

§ 59-13. Amendments; effect. 

The right to alter, amend, or repeal this chapter is hereby expressly reserved 
and disclosed, but no such amendment or repeal shall operate to impair the 
obligation of any contract made by said corporation under any power con- 
ferred by this chapter. 

1942 Code § 8555-23; 1934 (38) 1507. 

§ 59-14. Authority to construct Santee-Cooper project. 

The Public Service Authority may construct the Santee-Cooper hydroelec- 
tric and navigation project as outlined and described in the license issued by 
the Federal Power Commission to Columbia Railway and Navigation Com- 
pany for the construction of project No. S. C. 199, dated April 2 1926 and 
amended February 14 1927, May 31 1933 and May 13 1937 and on license 
drawings prepared and filed with said Commission at the time of the issuance 
of said license and said amendments and thereafter as required by the terms 
and provisions of said license and the amendatory plans and drawings filed 
or to be filed by the Public Service Authority with said Commission and 
approved or to be approved by said Commission or as outlined and described 

14 



§59-91 Public Works and Certain Public Authorities §59-93 

in any new license or licenses that the Authority may obtain from said Com- 
mission under the terms of this chapter. 
1942 Code § 8555-27; 1939 (41) 277. 



CHAPTER 1.1. 

Clark's Hill Authority. 

Sec. 

59-91. Establishment; members and terms. 

59-92. Officers and meetings. 

59-93. Powers and duties. 

§ 59-91. Establishment ; members and terms. 

There is hereby created the Clark's Hill Authority of South Carolina, herein- 
after called the Authority. The Authority shall consist of and be governed 
by a Board composed of eleven members to be appointed by the Governor. 
The members of the Board shall have seven year terms of office and all mem- 
bers of the Board shall serve until their successors shall have been appointed. 
In the event of a vacancy, however occasioned, the successor shall be appointed 
in the manner of the original appointment for the unexpired term. 

1946 (44) 1713. 

§ 59-92. Officers and meetings. 

The members of the Board shall elect one of their number as chairman and 
one as vice-chairman and shall also elect a secretary. The Board shall meet 
upon the call of its chairman and a majority of its members shall constitute 
a quorum for the transaction of its business. 

1946 (44) 1713. 

§ 59-93. Powers and duties. 
The Authority may : 

(1) Make inquiry into the status of, and plans for, the development of the 
Clark's Hill project by the United States Government, by the state of Georgia 
or by any other agency or instrumentality ; 

(2) Encourage, assist, promote and co-operate in the development of the 
Clark's Hill project and of the Savannah River and any or all streams, canals 
or watercourses now or hereafter connected to or flowing into said river and 
appear on behalf of the State before any agency, department or commission 
of this State, of the United States or of any other state in furtherance of such 
development or of any matter connected therewith or related thereto ; and 

(3) Negotiate agreements, accords or compacts on behalf of and in the 
name of the State with the state of Georgia or the United States of America, or 
both, with any agency, department or commission of either or both or with any 
other state or any agency, department or commission thereof, relating to the 
development of the Clark's Hill project, the development of the Savannah 
River and the development of any or all of the streams, canals or watercourses 

15 



§ 59-101 Code of Laws of South Carolina § 59-102 

now or hereafter connected to or flowing into said river, all or any of them, and 
particularly in reference to joint or concurrent action in the furtherance thereof. 

But any agreement, accord or compact made by the Authority hereunder 
shall be subject to approval by concurrent resolution of the General Assembly. 

1946 (44) 1713. 



CHAPTER 2. 

Agreements with United States About Rural 
Rehabilitation, etc., Projects. 

Sec. Sec. 

59-101. Definitions. 59-106. Collection by county treasurer. 

59-102. Counties may agree to perform serv- 59-107. Blank. 

ices for projects and receive pay- 59-108. Disbursement of funds by county 

ments in lieu of taxes. treasurer. 

59-103. Agreement to provide for division 59-108.1. Deposit of funds by political subdi- 

of payments; notice thereof. visions. 

59-104. When political subdivisions may act 59-109. Services political subdivisions to 

in lieu of counties. furnish. 

59-105. Basis of payments. 

§ 59-101. Definitions. 

The following definitions shall be applied to the terms used in this chapter: 

(1) "Agreement" shall mean contract and shall include renewals and altera- 
tions of a contract ; 

(2) "Political subdivision" shall mean any agency or unit of this State, cor- 
porate or otherwise, which is authorized to levy taxes or empowered to cause 
taxes to be levied; 

(3) "Services" shall mean such public and municipal functions as are per- 
formed for property in and persons residing within a political subdivision; 
and 

(4) "Project" shall mean any reforestation project, resettlement project or 
rural rehabilitation project for resettlement purposes of the United States 
located within a political subdivision and shall include the persons inhabiting 
such project. 

1942 Code §2788; 1939 (41) 529. 

§ 59-102. Counties may agree to perform services for projects and receive pay- 
ments in lieu of taxes. 

The governing body of any county in this State may make requests of the 
United States, for and on behalf of the county and political subdivisions whose 
jurisdictional limits are within or coextensive with the limits of the county, 
for the payment of such sums in lieu of taxes as the United States may agree 
to pay and may enter into agreements with the United States, in the name of 
the county, for the performance of services by the county and such political 
subdivisions for the benefit of a project and for the payment by the United 
States to the county, in one or more installments, of sums in lieu of taxes. 

1942 Code § 2789; 1939 (41) 529. 

16 



§59-103 Public Works and Certain Public Authorities §59-108 

§ 59-103. Agreement to provide for division of payments ; notice thereof. 

Each agreement entered into pursuant to § 59-102 shall contain the names 
of the political subdivisions with respect to which it is consummated and a 
statement of the proportionate share of the payment by the United States 
to which each political subdivision shall be entitled. The governing body of 
the county shall immediately notify each political subdivision with respect to 
which an agreement is entered into of the consummation thereof. 

1942 Code §2790; 1939 (41) 529. 

§ 59-104. When political subdivisions may act in lieu of counties. 

If the United States declines to deal with the governing body of a county 
with respect to any political subdivision whose jurisdictional limits are within 
or coextensive with the limits of the county or if the jurisdictional limits of a 
political subdivision lie in more than one county, such political subdivision 
may make request of the United States for such payments in lieu of taxes as the 
United States may agree to pay and may enter into an agreement with the 
United States for the performance by the political subdivision of services 
for the benefit of a project and for the payment by the United States to the 
political subdivision, in one or more installments, of sums in lieu of taxes. 

1942 Code §2793; 1939 (41) 529. 

§ 59-105. Basis of payments. 

The amount of any payment of sums in lieu of taxes may be based on the 
estimated cost to each political subdivision, for and on whose behalf an agree- 
ment is entered into, of performing services for the benefit of a project during 
the period of an agreement, after taking into consideration the benefits to be 
derived by the political subdivision from such project, but shall not be in 
excess of the taxes which would result to the political subdivision for such 
period if the real property of the project within the political subdivision were 
taxable. 

1942 Code §2794; 1939 (41) 529. 

§ 59-106. Collection by county treasurer. 

The governing body of the county shall file one copy of an agreement for a 
payment of sums in lieu of taxes with the county treasurer. On or before the 
date on which any payment of sums in lieu of taxes is due the county treasurer 
shall present a bill to the United States in the name of the county in the 
amount of such payment. Whenever such payment is received the county 
treasurer shall issue a receipt therefor, in the name of the county. 

1942 Code §2791; 1939 (41) 529. 

§ 59-107. Blank. 

§ 59-108. Disbursement of funds by county treasurer. 

Immediately after receiving a payment in lieu of taxes the county treasurer 
shall apportion and pay it, without any deduction, to the several political 
subdivisions, in accordance with the agreement under which the payment was 

[6SCCode] — 2 17 



§ 59-108.1 



Code of Laws of South Carolina 



§ 59-109 



received, notwithstanding any other law controlling the expenditure of county 
funds. 

1942 Code §2792; 1939 (41) 529. 

§ 59-108.1. Deposit of funds by political subdivisions. 

All money received by a political subdivision pursuant to §§ 59-104 and 
59-108 shall be deposited in such fund or funds as may be designated in the 
agreement and if the agreement does not make such designation the money 
shall be deposited in such fund or funds as the governing body of such political 
subdivision shall by appropriate resolution direct. 

1942 Code §2795; 1939 (41) 529. 

§ 59-109. Services political subdivisions to furnish. 

No provision of this chapter shall be construed to relieve any political sub- 
division of this State, in the absence of an agreement for payment of sums 
in lieu of taxes by the United States as provided in this chapter, of the duty of 
furnishing for the benefit of a project all services which the political subdivi- 
sion usually furnishes to property in, and persons residing within, the political 
subdivision without a payment in lieu of taxes. 

1942 Code §2796; 1939 (41) 529. 



CHAPTER 3. 
Municipal Public Works. 



Article 1. 

General Provisions. 
Sec. 

59-151. Laying water pipes under streams 
or highways. 

59-152. Interference with sewers, water- 
works, etc., prohibited. 

59-153. Investment of proceeds of sale of 
public utilities; sinking funds for 
outstanding bonds. 

59-153.1. Contract between Chester County 
and city of Chester. 

59-154. Water and sewerage accounts in 
Lamar. 

59-155. Tapping water line to tuberculosis 
hospital and county home in 
Spartanburg County. 

59-156. Springfield water plant not to be 
leased without prior election 
thereon. 

59-157. Walhalla to furnish water free to 
its public schools. 

59-158. Powers under certain sections cu- 
mulative. 



Article 2. 
Commissioners of Public Works Generally. 
Sec. 
59-171. Election, term and power to sue, 

etc. 
59-172. Special provisions for cities over 

fifty thousand. 
59-173. Appointment of commissioners in 

Beaufort. 
59-174. No such commissioners in certain 

municipalities. 
59-175. Qualification; organization; officers; 

vacancies. 
59-176. Clerk and other employees of Beau- 
fort commission; bonds. 
59-177. Vacancies and removal from office 

in Beaufort. 
59-178. Compensation of commissioners of 

Spartanburg. 
59-179. Powers. 

59-180. Rates and collection in Seneca. 
59-180.1. Duties of former Spartanburg 

metropolitan district devolved on 

Spartanburg commissioners. 
59-181. Incurring indebtedness. 

18 [6SCCode] 



Public Works and Ceutain Public Authorities 



Sec. 

59-182. Borrowing by Spartanburg board. 

59-182.1. Same; borrowing from Spartan- 
burg metropolitan district. 

59-182.2. Borrowing by Spartanburg district 
from commissioners. 

59-183. Borrowing by Beaufort board. 

59-184. Expenditures in Seneca. 

59-1S5. Monthly financial report. 

Article 3. 

Board of Public Works in Gaffney. 

59-191. Semiannual audit of affairs of board 

of public works of Gaffney. 
59-192. Same; access to books and records. 
59-193. Reports of audits; costs. 

Article 4. 

Acquisition of Lands and 
Condemnation Thereof. 

59-201. Purchase of lands for public works 
within corporate limits. 

59-202. Condemnation on refusal to sell land 
desired. 

59-203. Valuation of land. 

59-204. Meeting for appointment of com- 
missioners. 

59-205. Oath of commissioners. 

59-206. Procedure when owner under dis- 
ability or non-resident. 

59-207. Transfer of title. 

59-208. Appeal. 

59-209. Proceeding not to be suspended by 
an appeal. 

59-210. When clerk of court may execute 
deed. 

59-211. Recordation of deed and other pro- 
ceedings. 

Article 5. 

Miscellaneous Acquisition and Condem- 
nation Provisions. 

59-221. Cities and towns may acquire 
lands, etc., for water and electric 
works. 

59-222. Condemnation of land for water- 
works and to protect water sheds. 

59-223. Procedure in such cases. 

59-224. Drains for surface water. 

59-225. Condemnation for use of another 
corporation. 

59-226. Local residents may not serve on 
condemnation jury. 

Article 6. 

Municipal Utilities Generally. 

59-241. Construction and operation of mu- 
nicipal utilities. 
59-242. Blank. 



Sec. 

59-243. Election prerequisite to action un- 
der article. 

59-244. Election prerequisite to condemna- 
tion of waterworks. 

59-245. Petition prerequisite to election. 

59-246. Question may refer to issue of rev- 
enue bonds. 

59-247. Action if election favorable. 

59-248. Furnishing water for compensation. 

Article 7. 
Blank. 

Article 8. 
Blank. 

Article 9. 
Revenue Bond Act for Utilities. 

59-361. "Borrower" denned. 

59-362. "Governing body" defined. 

59-363. Definition of "municipality." 

59-364. Meaning of "system." 

59-365. Public works authorized under arti- 
cle. 

59-366. Joint projects. 

59-367. Improvement of existing system. 

59-368. Construction on private property. 

59-369. Construction and operation of 
works; acquisition of property. 

59-370. Condemnation of property. 

59-371. Condemnation procedure; require- 
ment of security. 

59-372. Municipality not bound; source of 
payment. 

59-373. Option or contract of purchase. 

59-374. Estimate of cost of system. 

59-375. Estimate of repairs, etc., when ex- 
isting works acquired. 

59-376. Ordinances or resolutions for pur- 
pose of article. 

59-377. Exercise of powers by counties and 
townships. 

59-378. Acceptance of Federal loans and 
grants. 

59-379. Bond issues authorized. 

59-380. Bonds not subject to certain limita- 
tions. 

59-381. Ordinance before bond issue. 

59-382. Terms, form and execution of bonds. 

59-383. Undelivered bonds executed by ex- 
officers valid. 

59-384. Bonds negotiable. 

59-3S5. Bonds tax exempt. 

59-386. Sale of bonds. 

59-387. Bonds legal investments. 

59-388. Deposit of proceeds from bonds; 
security therefor. 

59-389. Use of proceeds from bonds. 



19 



Code of Laws of South Carolina 



Sec. 

59-390. Payment of bonds before maturities. 

59-391. Statutory lien of bond holders on 
system. 

59-392. Pledge of water revenues for wa- 
ter and/or sewer system. 

59-393. Enforcement of lien of bond holders. 

59-394. Receiver. 

59-395. Additional bonds for further im- 
provements. 

59-396. Revenue refunding bonds. 

59-397. Rates for service. 

59-398. Rates not subject to regulations and 
permits not required. 

59-399. Payment for service by borrower. 

59-400. Accounting basis of project. 

59-401. Custodian of gross revenues; funds 
are trust funds. 

59-402. Segregation of revenues to several 
funds. 

59-403. Payment of expenses of operation 
or maintenance. 

59-404. Bonds payable only from bank and 
interest redemption fund. 

59-405. Excess contributions to bond and 
interest redemption fund. 

59-406. Disposition of surplus in operation 
and maintenance fund. 

59-407. Disposition of surplus in deprecia- 
tion fund. 

59-408. Disposition of surplus in contingent 
fund. 

59-409. Books and accounts; annual report; 
inspection. 

59-410. Limitation of obligation of munici- 
pality. 

59-411. Issue of bonds without election or 
notice. 

59-412. Effect of former Public Works Ad- 
ministration Act. 

59-413. No effect on existing contracts and 
liens. 

59-414. Article creates alternate method. 

59-415. Article to be liberally construed. 

Article 10. 

Unauthorized Use of Municipal Water 
System. 

59-421. Opening fire hydrants. 

59-422. Interference with appurtenances. 

59-423. Injury or obstructions to system or 

pollution of water. 
59-424. Unauthorized use of water. 
59-425. Use of water without contract a 

misdemeanor. 

59-426. Tapping water main without permit. 
59-427. Penalty. 



Article 11. 

Sale of Municipal Electric or Water Plant. 
Sec. 

59-441. Election to consider sale of light 
or water plants. 

59-442. Security from purchaser. 

59-443. Notice of election. 

59-444. Blank. 

59-445. Persons entitled to vote and con- 
duct of election. 

59-446. Sale if majority favors. 

59-447. Two-thirds vote required in Gaff- 
ney. 

59-448. Operating agreement with purchas- 
er; maximum rates. 

59-449. Grant of franchise. 

59-450. Special provisions for Seneca Light 
and Water Plant 

Artice 12. 
Extension of Water and Sewer Systems. 

59-461. Extension and assessment therefor. 

59-462. Extension beyond city limits. 

59-463. Ordinance to provide for payment 
of costs. 

59-464. Entry of assessments. 

59-465. Same; when extensions beyond city 
limits. 

59-466. Lien of assessments. 

59-467. Effect of default in payment of in- 
stallment. 

59-468. Entry of satisfaction of assessments. 

59-469. Deposit and use of receipts. 

59-470. Issue certificates of indebtedness 
against assessments. 

59-471. Assessment book and entry of satis- 
faction in Chester. 

Article 13. 

Sewerage Systems Generally and Sewerage 
Commissions. 

59-481. Establishment of municipal sewer- 
age system. 

59-482. Sewerage commission; when and 
how constituted; term. 

59-483. Exception for Myrtle eBach. 

59-484. Exception for Union. 

59-485. Oaths of members; officers; vacan- 
cies and removal from office. 

59-486. Duties of sewerage commission. 

59-487. Commission not to contract with 
member. 

59-488. Expenditures. 

59-489. Records of commission. 

59-490. Use of streets, highways and public 
buildings for sewerage purposes. 

59-491. Contracts as to systems of sewerage 
disposal. 



20 



§ 59-151 



Public Works and Cektain Public Authorities 



§59-151 



Sec. 

59-492. Use of other revenues for sewerage 
in Union. 

59-493. General ordinances, rules, regula- 
tions, etc. 

Article 14. 

Sewer Districts In Charleston County. 

59-511. Connection charge. 

59-512. Payment of such charge. 

59-513. Lien and collection of charge. 

59-514. Record of charges. 

59-515. Loans to districts authorized. 

59-516. Application for loan. 

59-517. Assignment to county of charges 

due. 
59-518. Making of loan. 
59-519. Use of funds borrowed; publication 

of expenditures. 

59-520. Notice to property owners of as- 
signment. 

59-521. Collection and disposition of charges 
after assignment. 

Article 15. 

Water, Lights and Sewerage Beyond 
City Limits. 

59-531. When such utilities may be fur- 
nished. 

59-532. Same; cities over 70,000, 1940 census. 

59-533. Same; special provision for cities 
of 50,000 to 60,000, 1950 census. 

59-534. Same; special provisions for Winns- 
boro. 

59-535. Same; authorized term in Eau 
Claire. 

59-535.1. Same; special provisions for Mc- 
Coll. 



Sec. 
59-536. Furnishing water, light or sewer- 
age disposal beyond city limits in 
Anderson, McCormick and York 
Counties. 

Article 16. 
Ice Plants. 

59-541. Acquisition and operation. 

59-542. Blank. 

59-543. Blank. 

59-544. Operation of plant; bond; removal. 

59-545. Selling price of ice. 

59-546. Special election to authorize sale 
of ice plant. 

59-547. Security required of proposed pur- 
chaser. 

59-548. Notice of election. 

59-549. Blank. 

59-550. Blank. 

59-551. Sale if election favorable; contract 
for operation and maximum rates. 

Article 17. 

Water Front Improvements. 

59-561. Cities of fifty thousand or more 

may condemn lands on water 

front. 
59-562. Filling up certain lowlands in such 

cases. 
59-563. How such lands shall be filled. 
59-564. In case of disagreement, city shall 

condemn. 
59-565. Condemnation proceedings. 

Article 18. 
Local Rock Hill Provisions. 
59-571. Water system in Rock Hill. 
59-572. Rock Hill sewer system. 
59-573. Election prerequisite to lease or 
conveyance of Rock Hill watei 
or electric plant. 



Article 1. 

General Provisions. 

§ 59-151. Laying water pipes under streams or highways. 

Any municipal corporation of this State having power to construct and 
operate a plant for water supply or any person contemplating the laying of 
pipes for supplying water to a municipal corporation or to a community of 
citizens may lay water pipes for the purpose of carrying water on or under 
the bed of any nontidal navigable stream of this State and, with the approval 
of the county authorities in any county, on or under any highway of such 
county. Such pipes shall be so laid as not to interfere with the free use of 
such highway or the navigation of such streams by boats to the same extent 
that they would be navigable if such pipes were not laid. 

21 



§ 59-152 Code of Laws of South Carolina § 59-153.1 

Every such municipality or person, having laid such pipes, shall keep them 
in repair. 

1942 Code § 7346; 1932 Code § 7346; Civ. C. *22 § 4479; Civ. C. '12 § 3054; 1903 (24) 77. 

§ 59-152. Interference with sewers, waterworks, etc., prohibited. 

No person shall turn, remove, raise or in any manner tamper with any cover 
of any manhole, filter, bed or other appurtenance of any public sewer without 
a written permit from the proper authorities of such works and no person 
except those engaged by the proper authorities shall enter any public sewer 
without a special written permit. 

And no person shall, either within or without any city or town, obstruct, 
damage or injure any pipe, ditch, drain, filter, beds or appurtenance of any 
waterworks, sewerage or drainage of any such city or town. 

Every person violating any of the provisions of this section shall be guilty 

of a misdemeanor and, upon conviction, be subject to a fine not to exceed one 

hundred dollars or imprisonment for thirty days. 

1942 Code § 1204; 1932 Code § 1204; Cr. C. '22 §92; Cr. C. '12 §253; Cr. C. '02 § 194; 
1900 (23) 446. 

§ 59-153. Investment of proceeds of sale of public utilities; sinking funds for 
outstanding bonds. 

Whenever any city or town in this State had prior to February 7 1927 
issued bonds for the acquisition, by construction, purchase or otherwise, of 
any waterworks, lighting plant or other public utility and sells such utility 
prior to the maturity of such bonds, the governing body of such city or town 
may invest an amount of the proceeds of sale of such utility equal to the 
amount of outstanding bonds in duly secured notes of the purchaser of such 
utility or otherwise, as the governing body may determine. Upon any such 
investment being made, such governing body may, by resolution, set apart 
such investment as a sinking fund for the retirement of such outstanding bonds 
and when such investment is so made and set apart any other sinking funds 
on hand for the retirement of such bonds shall become freed of their character 
as sinking funds and may be lawfully diverted to any other legal municipal 
purpose ; and no further annual tax levy for the repayment of such bonds 
shall be necessary. 

1942 Code §7279; 1932 Code §7279; 1927 (35) 42. 

§ 59-153.1. Contract between Chester County and city of Chester. 

In the absence of an agreement between the city of Chester and the govern- 
ing body of Chester County as authorized by Act No. 1153 of the Acts and 
Joint Resolutions of 1950, the clerk and said governing body may purchase 
water from the city of Chester and contract with persons for use of the water 
and sewer mains that connect with the city's water and sewer mains and the 
Chester County Hospital. They shall establish and maintain rates and charges 
for such services and the use of the facilities of such water and sewer mains. 
Such rates and charges shall be designed to produce revenue sufficient ade- 
quately to afford the services and maintain and operate the facilities and to 

22 



§59-154 Public Works a\d Certain Public Authorities §59-157 

discharge and retire any indebtedness that has been incurred in the construction 
of such sewer and water mains. 
1951 (47) 344. 

§ 59-154. Water and sewerage accounts in Lamar. 

The town council of the town of Lamar shall keep at all times a separate 

and correct account of the receipts and disbursements as to any and all matters 

connected with and pertaining to the water and sewerage system of the town. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. *12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 
(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 
716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 
(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
140S; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1S15. 

§ 59-155. Tapping water line to tuberculosis hospital and county home in 
Spartanburg County. 

The governing body of Spartanburg County shall charge the sum of fifty 
dollars to any person tapping the water line as buil.t by the county to the 
tuberculosis hospital and county home in said county. 

1949 (46) 86. 

§ 59-156. Springfield water plant not to be leased without prior election there- 
on. 

The town council of the town of Springfield shall not lease the present 

water plant, water lines or the franchise or right to furnish water to consumers 

in the town or any property rights incident thereto, or used in connection 

therewith, without first submitting such question to the qualified electors of 

the town nor unless a majority of such electors voting in any such election 

shall vote in favor of such lease. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625: 1913 
(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 
716, 9S6; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246. 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 
(35) 1143; 1929 (36) 40, 45, 49; 1930 (361 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-157. Walhalla to furnish water free to its public schools. 

The commissioners of public works of the town of Walhalla in Oconee 
County shall furnish water, free of charge, to the public schools in said town 
in such quantity as such schools may require. Any person violating the pro- 
visions of this section shall be guilty of a misdemeanor and punished by a 
fine of not exceeding one hundred dollars or imprisonment not exceeding 
thirty days. Every day of violation of the terms of this section shall be 
deemed a separate offense. 

1942 Code § 7675-56; 1934 (38) 1258. 

23 



§ 59-158 Code of Laws of South Carolina § 59-172 

§ 59-158. Powers under certain sections cumulative. 

The powers conferred by §§ 47-931, 59-154, 59-156, 59-171 to 59-176, 59-179, 
59-181, 59-182, 59-185, 59-221, 59-241, 59-243 to 59-245, 59-247, 59-571 and 59-572 
upon the cities and towns of the State are, and shall be taken, deemed and con- 
strued to be, in addition to the powers now enjoyed by such cities and towns. 

1942 Code §7294; 1932 Code §7294; Civ. C. '22 §4443; Civ. C. '12 §3020; Civ. C. '02 
§2013; 1897 (22) 507. 

Article 2. 

Commissioners of Public Works Generally. 

§ 59-171. Election, term and power to sue, etc. 

At any election for bonds held to meet the costs of acquiring property of the 
character referred to in § 59-241 the elector shall vote for three citizens of the 
city or town whose terms of office shall be respectively two, four and six years 
and until the general election for municipal officers next following the expira- 
tion of the short term, and until their successors are elected and qualified. The 
classification above designated as to the term shall be ascertained by the com- 
missioners after election by lot. At each general election for municipal officers 
following the expiration of the term of the commissioner holding the short term 
and at every such election every two years thereafter, one such commissioner 
shall be elected for a term of six years and until his successor is elected and 
qualified. The officers so elected and their successors in office shall be known 
as the commissioners of public works of such municipality and by that name 
may sue and be sued in any of the courts of this State. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 

§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 

(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 

716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 

1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 

(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

Applied in Green v. Rock Hill, 149 S. C. burne, 84 S. C. 451, 66 S. E. 6S1 (1910); 

234, 147 S. E. 346 (1929). Ross v. Lipscomb, 83 S. C. 136, 65 S. E. 451 

Cited in Harby v. Jennings, 112 S. C. (1909); Seegers v. Gibbes, 72 S. C. 532, 52 

479, 101 S. E. 649 (1919); Black v. Fish- S. E. 586 (1905). 

§ 59-172. Special provisions for cities over fifty thousand. 

In cities of fifty thousand inhabitants or more, in addition to the three 
commissioners of public works to be elected as provided in § 59-171, the 
mayor and the chairman of the committee on water supply, if there be such a 
committee, shall be ex officio commissioners of public works. In such cities 
such commissioners of public works shall serve without compensation. The 
board of commissioners of public works in any such city shall fill any vacancy 
occurring in the commission by appointment for the unexpired term, appoint- 
ment to be made by the remaining commissioners, except in the case of an ex 
officio member of the commission. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 

24 



§59-173 Public Works and Certain I'i blic Authorities §59-174 

(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715. 770; 1920 (31) 
716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 
(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-173. Appointment of commissioners in Beaufort. 

The city council of the city of Beaufort shall appoint three resident free- 
holders of the city as commissioners of public works of said city. The first 
commissioners having been appointed for terms of six, four and two years, 
their successors have been and shall hereafter be appointed for terms of six 
years and shall hold office for the term for which they are appointed and 
until their successors are duly appointed and qualified. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 

§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 

(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 

716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 

1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 

(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-174. No such commissioners in certain municipalities. 

In the cities and towns of Abbeville, Barinvcll, Bclton, Bennettsville, Branch- 
villc, Camden, Cheraw, Chester, Clintcn, Clio, Clover, Conway, Cozvpcns, Denmark, 
Dillon, Donalds, Due West, Edgefield, Estill, Fairfax, Fort Mill, Fountain Inn, 
Georgetown, Heath Springs, Honea Path, Kingstree, Lake City, Lamar, Lancaster, 
Landrum, Latta, Lexington, Loris, Marion, McColl, Nexvbcrry, North Augusta, 
Orangeburg, Pickens, Prosperity, Rock Hill, St. George, Salley, Sunpsonville, 
Springfield, Sumter, Swansea, Timuwnsville, Walhalla, Walterboro, West Greenville 
and West Union there shall be no board of commissioners of public works but 
in said cities and towns the duties, powers and responsibilities vested in such 
boards in other cities and towns shall be vested in the respective city or town 
councils of such cities or towns except that (a) in the cities of Marion and New- 
berry and in the town of Landrum they shall be vested in the mayor and alder- 
men, (b) in the city of Rock Hill and in the towns of Bennettsville, Branchville, 
Clio, Clover, Dillon, Due West, Kingstree, Lancaster, North Augusta, Prosperity, 
Salley, Walhalla and West Union they shall be vested in the mayor and city or 
town council or in the intendant and wardens, as the case may be, and (c) in 
the town of Pickens they shall be vested in the town council and the sinking- 
fund commission of the town. 

1942 Code §§7281, 7675-6, 7675-22, 7675-27, 7675-38, 7675-39; 1932 Code §7281; 
Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 §2009; 1896 (22) 83; 1899 (23) 50; 
1900 (23) 3S3; 1904 (24) 403; 1907 (25) 625; 1913 (28) 48; 1915 (29) 61; 1916 (29) 
826, 946; 1917 (30) 60; 1918 (30) 715, 717; 1920 (31) 716, 786; 1921 (32) 39, 196, 248; 
1922 (32) 781, 789, 794, 834; 986; 19^3 (33) 158, 162; 1924 (33) 1062; 1925 (34) 7, 246, 
265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 (35) 1143; 1929 (36) 40, 45, 49; 1930 

(36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 1350, 1408; 1933 (38) 466, 515; 1934 
(38) 1473; 1936 (39) 1368, 1480; 1940 (41) 1815; 1942 (42) 1446, 1482; 1946 (44) 1347, 
1355, 1403; 1947 (45) 296, 520, 533; 1948 (45) 1661, 2017; 1949 (46) 149; 1950 (46) 1923, 
1928, 1952, 2011, 2029, 2152, 2233, 2321; 1951 (47) 364. 

25 



§ 59-175 Code of Laws of South Carolina § 59-177 

§ 59-175. Qualification; organization; officers; vacancies. 

The mayor of the city or the mayor or intendant of the town shall notify 
the persons so elected as members of the commissions of public works of 
their election, within ten da3*s after the results of such election are declared. 
The persons elected or appointed to such office shall qualify by taking the 
same oath as the elected officers of the municipality take. At the first meeting 
of the commissioners after the election, and after any election for a full term, 
they shall organize by the election of one of their number as chairman. The 
clerk or recorder of the municipality shall act as secretary of the commission- 
ers. The mayor and aldermen or council of the city or the mayor or intendant 
and the council or wardens of a town shall fill any vacancy occurring in the 
commission by appointment for the unexpired term. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 
(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 
716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 192s 
(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-176. Clerk and other employees of Beaufort commission ; bonds. 

The commissioners of public works of the city of Beaujort shall employ a 

clerk and such other employees as they may deem necessary in the proper 

operation of the city waterworks. The clerk shall, before entering upon his 

duties, deposit with the city treasurer a bond in the sum of not less than one 

thousand dollars payable to the city, conditioned for the faithful performance 

of his duties. Such bond shall be approved by the commissioners of public 

works. The commissioners may, as they deem proper, require any and all 

other employees to give bond for the faithful performance of their duties in 

such amount, or amounts, as may be approved by them. The premium on such 

bond or bonds shall be paid by the commissioners of public works .and charged 

to the expense of operation of the waterworks. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 

§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 

(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 

716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 

1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 

(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-177. Vacancies and removal from office in Beaufort. 

The city council of the city of Beaufort shall fill any vacancies occurring in 

the commission of public works of said city by appointment for the unexpired 

term. Any of the commissioners of public works of said city may be removed 

by the city council for cause at any time. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 333; 1904 (24) 403; 1907 (25) 625; 1913 
(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 191S (30) 715, 770; 1920 (31) 
716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 91S, 977; 1927 (35) 119, 171, 210; 192S 
(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (33) 1473; 1936 (39) 14S0; 1940 (41) 1815. 

26 



§59-178 Public Works and Certain Public Authorities §59-180.1 

§ 59-178. Compensation of commissioners of Spartanburg. 

The three commissioners of public works of the city of Spartanburg shall 
each receive as compensation for their services such sum as may be fixed l>v 
them not in excess of twelve hundred dollars each per annum. The compen- 
sation so fixed shall be payable monthly. 

1942 Code § 7675-53; 1933 (38) 466; 1934 (38) 1473. 

§59-179. Powers. 

The board of commissioners of public works of any city or town may pur- 
chase, build or contract for building any waterworks or electric light plant 
authorized under article 6 of this chapter and may operate them and shall have 
full control and management of them. It may supply and furnish water 
to citizens of the city or town and also electric, gas or other light and may 
require payment of such rates, tolls and charges as it may establish for the 
use of water and light. 

1942 Code %72S3; 1932 Code §72S3; Civ. C. '22 §4432; Civ. C. '12 §3017; Civ. C. '02 
§2010; 1S96 (22) 85; 1901 (23) 725; 1915 (29) 53; 1924 {33) 1161; 1929 (36) 84; 1932 {.37) 
1409; 1933 (38) 277. 

Cross references. — As to construction and fit, subject to control of courts, under well- 
operation of municipal utilities generally, settled legal principals. Green v. Rock 
see §59-241. As to election prerequisite to Hill. 149 S. C. 234, 147 S. E. 346 (1929). 
acquisition or disposal of municipal utility, The commission under this section is but 
see §§ 59-243 to 59-245. As to action by an agency of the city or town, having no 
city council if majority of electors favor greater authority than its principal. Simons 
acquisition or disposal of municipal utility, v. City Council, 181 S. C. 353, 187 S. E. 
see § 59-247. 545 (1936). 

City may dispose of waterworks. — Under Applied in Waits v. Ninety-Six, 154 S. C. 
this section and § 59-241, the city of Rock 350, 151 S. E. 576 (1930); Irvine v. Green- 
Hill, through electorate and city council, has wood, 89 S. C. 511, 72 S. E. 228 (1911). 
plenary discretionary power to make such Cited in Johnson v. Roddey, 83 S. C. 462, 
disposal of waterworks plant as it may see 65 S. E. 626 (1909). 

§ 59-180. Rates and collection in Seneca. 

No change shall be made in the existing rates for the sale of water or 
electricity in the town of Seneca, either in raising or lowering them, without 
the approval of the mayor and council of the town in council assembled. 
The treasurer in the town of Seneca shall collect all service charges for services 
rendered by the Seneca Light and Water Plant and no expenditures shall be 
made from such funds without the approval of a majority vote of the town 
council. 

1950 (46) 2151, 3374. 

§ 59-180.1. Duties of former Spartanburg metropolitan district devolved on 
Spartanburg commissioners. 
The duties, powers and authority that were on March 21 1932 exercised by 
and conferred upon the commissioners of the Spartanburg metropolitan dis- 
trict as created by Act 556 of 1929, and acts amendatory thereof, are conferred 
on and devolved upon the commissioners of public works of the city of Spartan- 
burg. For the performance of the duties hereby imposed the commissioners 

27 



§ 59-181 Code of Laws of South Carolina § 59-182.2 

of public works of the city of Spartanburg shall receive no additional compen- 
sation. 

1942 Code § 7675-53; 1932 (37) 1393. 

§59-181. Incurring indebtedness. 

No board of commissioners of public works may incur any indebtedness 

without the concurrence of the city or town council. 

1942 Code §7283; 1932 Code §7283; Civ. C. '22 §4432; Civ. C. '12 §3017; Civ. C. '02 
§2010; 1896 (22) 85; 1901 (23) 725; 1915 (29) 53; 1924 (33) 1161; 1929 (36) 84; 1932 
(37) 1409; 1933 (38) 277. 

Cross references. — As to construction and §§ 59-243 to 59-245. As to action by city 

operation of municipal utilities generally, see council if majority of electors favor acquisi- 

§ 59-241. As to election prerequisite to ac- tion or disposal of municipal utility, see § 59- 

quisition or disposal of municipal utility, see 247. 

§ 59-182. Borrowing by Spartanburg board. 

With the concurrence of the city council the commissioners of public works 

for the city of Spartanburg may borrow, on their negotiable notes or certificates 

of indebtedness to mature not more than six months after date of issue and to 

bear not more than six per cent interest, sums not exceeding the estimated 

net revenues from the operation of the waterworks for a period of six months 

and may secure the payment of such notes or certificates by pledge of such 

net revenues for such period. 

1942 Code §7283; 1932 Code §7283; Civ. C. '22 §4432; Civ. C. '12 §3017; Civ. C. '02 
§2010; 1896 (22) 85; 1901 (23) 725; 1915 (29) 53; 1924 (33) 1161; 1929 (36) 84; 1932 
(37) 1409; 1933 (38) 277. 

§ 59-182.1. Same; borrowing from Spartanburg metropolitan district. 

The commissioners of public works of the city of Spartanburg may lend any 
unemployed funds in their hands belonging to the Spartanburg metropolitan 
district to themselves as commissioners for the use of the Spartanburg city 
waterworks for a period not exceeding six months or upon demand, at a rate 
of interest not exceeding six per cent. In order to secure such loan the com- 
missioners of public works of the city of Spartanburg shall pledge the net 
revenues arising from the operation of the waterworks of the city received 
by such commissioners and apply them, or so much thereof as may be neces- 
sary, to satisfy their obligation to the Spartanburg metropolitan district. 

1942 Code § 7675-53; 1934 (38) 1437. 

§ 59-182.2. Borrowing by Spartanburg district from commissioners. 

Should the commissioners of public works of the city of Spartanburg have 
unemployed funds belonging to the waterworks of said city in their possession, 
the board may lend such funds to the Spartanburg metropolitan district, or 
so much thereof as it may require, upon the same terms as expressed in 
§ 59-182.1, the commissioners of public works of the city of Spartanburg pledg- 
ing the net receipts from all sources of moneys belonging to the metropolitan 
district to the payment of any note or other obligation representing such loan, 
or so much thereof as may be necessary to satisfy it. 

1942 Code § 7675-53; 1934 (38) 1437. 
1 28 



§ 59-183 Public Works and Certain Public Authorities § 59-191 

§ 59-183. Borrowing by Beaufort board. 

The commissioners of public works of the city of Beaufort may incur any 

indebtedness necessary for the current operation of the waterworks without 

the consent of the city council, when the total of such expenses does not 

exceed the annual gross revenue derived from the waterworks. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 
(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 
716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986: 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 1928 
(35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 (37) 
1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-184. Expenditures in Seneca. 

No expenditures shall be made by the commissioners of public works of the 
town of Scucca without approval by a majority vote of the town council. 

1950 (46) 3374. 

§ 59-185. Monthly financial report. 

Each board of commissioners of public works shall make a full statement to 
the city or town council at the end of each month of its receipts and disburse- 
ments of all kinds during' the preceding month. 

1942 Code §7283; 1932 Code §7283; Civ. C. '22 §4432; Civ. C. '12 §3017; Civ. C. '02 
§2010; 1896 (22) 85; 1901 (23) 725; 1915 (29) 53; 1924 (33) 1161; 1929 (36) 84; 1932 
(37) 1409; 1933 (38) 277. 

Cross references. — As to construction and see §§ 59-243 to 59-245. As to action by- 
operation of municipal utilities generally, city council if majority of electors favor 
see § 59-241. As to election prerequisite to acquisition or disposal of municipal utility, 
acquisition or disposal of municipal utility, see § 59-247. 

Article 3. 
Board of Public Works in Gaffney. 

§ 59-191. Semi-annual audit of affairs of board of public works of Gaffney. 

There shall be made semi-annually an audit of the records of the affairs 
of the board of public works of the city of Gaffney, in Cherokee County. Such 
audit shall be made by an auditor who shall be a certified public accountant 
appointed from time to time by the county legislative delegation in office at 
the time such audit is to be made. If the county legislative delegation should 
fail to order an audit made during any period of six months, the city council 
of Gaffney may give the county legislative delegation notice thereof. If, ten 
days after such notice has been given in writing, the county legislative dele- 
gation fails to authorize an audit the city council shall authorize such audit 
and employ auditors as provided by this section. The legislative delegation 
or the city council, in appointing such auditor, shall designate the time when 
such audit is to be made. 

1942 Code §7675-28; 1940 (41) 1904. 

29 



§ 59-192 Code of Laws of South Carolina § 59-202 

§ 59-192. Same ; access to books and records. 

The commissioners of public works of Gaffney and all officers and employees 
of said board of public works shall exhibit to any auditor appointed under 
the provisions of this article all books and records relating to the affairs of the 
board to the end that a complete and proper audit may be made of such affairs. 

1942 Code §7675-28; 1940 (41) 1904. 

§ 59-193. Reports of audits ; costs. 

Upon the completion of any audit under the provisions of § 59-191 the 
auditor shall file his report of such audit with the clerk of the city of Gaffney 
and upon so doing such report shall become a public record, subject to inspec- 
tion by whoever may so desire. Upon filing such report, such auditor shall 
also deliver a copy of it to the county legislative delegation and a copy to the 
secretary of the board of public works. 

The costs of such audits shall be paid by the commissioners of public works 
from the funds of the board. 

1942 Code § 7675-28; 1940 (41) 1904. 

Article 4. 
Acquisition of Lands and Condemnation Thereof. 

§ 59-201. Purchase of lands for public works within corporate limits. 

Any municipal corporation desiring to become the owner of any land, 
situate within the corporate limits of such municipal corporation, in this 
State, for the erection of a public building for the use of the corporation or the 
purpose of procuring a supply of water or establishing a sewerage system or 
other public works for the use of the corporation, may purchase such land 
from the owner thereof and pay for it in such manner as such municipal cor- 
poration may determine. 

1942 Code § 7307; 1932 Code §7307; Civ. C. '22 §4455; Civ. C. '12 §3032; 1907 (25) 640. 

Cross reference. — As to general power of v. Watkins, 196 S. C. 51, 12 S. E. (2d) 545 

municipal corporation to purchase real es- (1940). 
tate, see § 47-230. Cited in Carter v. Greenville, 175 S. C. 

Section must be construed with other con- 130, 178 S. E. 508 (1935); Spartanburg v. 

demnation provisions. — Greenwood County Cudd, 132 S. C. 264, 128 S. E. 360 (1925). 

§ 59-202. Condemnation on refusal to sell land desired. 

In case the owner of (a) any land situate within the corporate limits and 

desired by a municipal corporation for any of the purposes referred to in § 59- 

201 or (b) any land desired by such corporation for enlarging, extending or 

establishing a sewerage system or a water system whether within or without 

such corporate limits shall refuse to sell it, such municipal corporation may 

condemn such land in the manner provided in this article. 

1942 Code § 7308; 1932 Code § 7308; Civ. C. '22 § 4456; Civ. C. '12 § 3033; 1907 (25) 640; 
1951 (47) 732. 

Cross reference. — As to prohibition Quoted in Greenwood County v. Watkins, 

against taking private property for public 196 S. C. 51, 12 S. E. (2d) 545 (1940). 
use without just compensation, see S. C. 
Const., Art. 1, § 17. 

30 



§ 59-203 Public Works and Certain Public Authorities § 59-206 

§ 59-203. Valuation of land. 

In case any owner of the lot or lands desired for any of the purposes men- 
tioned in § 59-202 shall demand what may be deemed by the municipal corpo- 
ration an unreasonable price, the corporation shall nominate and appoint six 
freeholders, resident in such city or town, who shall meet an equal number to 
be named on the part of the owner to determine and fix upon the true and 
real value of such land and any damages thereto by reason of the taking of 
said property, with full power in the commissioners appointed as aforesaid, in 
case of disagreement, to call in one other commissioner. In determining the 
value of the land so taken, the commissioners shall estimate only the quantity 
and value of the land so taken and the special damage to the property which 
the owner may sustain by reason of the taking, but shall make no allowance 
to the corporation for the supposed benefits accruing to the owner of the 
property. 

1942 Code §7311; 1932 Code § 7311; Civ. C. *22 § 4457; Civ. C. '12 § 3034; 1907 (25) 640. 

Section must be construed with other con- And the title acquired in a condemna- 

demnation provisions. — Greenwood County tion proceeding by a municipality under §§ 
v. Watkius, 196 S. C. 51, 12 S. E. (2d) 545 59-370 and 59-371 must be referred to this 
(1940). section. Greenwood Countv v. Watkins, 

196 S. C. 51, 12 S. E. (2d) 545 (1940). 

§ 59-204. Meeting for appointment of commissioners. 

The mayor or intendant of such city or town shall call a meeting of the 
owner or owners of any property so required at some proper time and place 
by the service of a notice, as summons are required to be served, for the 
purpose of appointing such commissioners. If the owner or owners refuse 
to attend such meeting, or neglect or fail to appoint such commissioners, then 
the commissioners appointed by the city or town on its behalf, or a majority 
of them, may proceed to discharge the duties herein prescribed and their judg- 
ment in the matter shall be final and conclusive, except in case of appeal as 
herein prescribed. 

1942 Code §7314; 1932 Code § 7314; Civ. C. '22 §4460; Civ. C. '12 §3037; 1907 (25) 640. 

§ 59-205. Oath of commissioners. 

The aforesaid commissioners, before proceeding to act in the premises, shall 
severally make oath before the clerk of the court or some other officer author- 
ized to administer an oath that they will fairly, faithfully and impartially 
discharge the duties herein required of them. 

1942 Code §7317; 1932 Code §7317; Civ. C. '22 §4463; Civ. C. '12 §3040; 1907 (25) 640. 

§ 59-206. Procedure when owner under disability or non-resident. 

When the owner, or any one of several owners, of the land is an infant or 
non compos mentis the required notice shall be served personally upon the 
trustee, guardian or committee of such person and personally on such owner 
and if there be no such trustee, guardian or committee in the State the clerk 
of the court of common pleas may appoint for such person a guardian ad litem, 
upon whom the service shall be made, and who shall represent the interest of 

31 



§ 59-207 Code of Laws of South Carolina § 59-209 

such infant or person non compos mentis. Such appointment shall be made 
by the clerk in the manner now provided by law for the appointment of guard- 
ians ad litem in civil actions. If any owner of the land shall reside beyond this 
State or his place of residence be unknown the service shall be made upon 
the agent of such owner in charge of the lands or, if there be no such agent, 
then such owner shall be served by publication of the notice, as is provided 
for publishing summons in civil cases. 

1942 Code § 7315; 1932 Code § 7315; Civ. C. '22 § 4461; Civ. C. '12 § 3038; 1907 (25) 640. 

§ 59-207. Transfer of title. 

On the payment of the full value of such land and such special damages, 
ascertained and determined in the manner herein provided, the fee simple of 
the lot or lands shall be vested in such city or town for the use of the public 
and the owner shall execute his deed, without warranty therefor, to the city or 
town. 

1942 Code § 7311; 1932 Code § 7311; Civ. C. '22 § 4457; Civ. C. '12 § 3034; 1907 (25) 640. 

§ 59-208. Appeal. 

In case any owner or municipal corporation shall be dissatisfied with the 
valuation of any such lands, or such special damages aforesaid, he or it may 
appeal to the circuit court of the county in which the land lies, by giving a 
notice in writing to the opposite party or their attorneys within ten days 
after receipt of written notice of the valuation and assessment of damages. 
At the next term of the court of common pleas for such county either party 
may move for a trial by a jury in the circuit court and the case shall be tried, 
as near as may be, like other civil cases, the appellant being the actor. The 
verdict of such jury shall be final, unless a new trial is granted by the circuit 
judge for some reason provided by law, and after final judgment in such case 
the fee simple of such land shall be vested in the city or town upon the pay- 
ment, or tender of payment, of the amount of such valuation and damages and 
the owner shall thereupon execute his deed in fee simple, without warranty, 
for the land so condemned. 

1942 Code § 7312; 1932 Code § 7312; Civ. C. '22 § 4458; Civ. C. '12 § 3035; 1907 (25) 640. 

Applied in In re Rugheimer, 36 F. 369 
(1888). 

§ 59-209. Proceeding not to be suspended by an appeal. 

When the commissioners shall have assessed the lands and damages the 

proceedings shall not be suspended by an appeal, but upon depositing the 

amount of such award with the clerk of the court of common pleas in the 

county in which the land lies and filing a good and sufficient bond to pay 

whatever damages the owner of the land may suffer by reason of the taking 

of such land for any purpose mentioned in § 59-202 the municipality may take 

possession of the land. 

1942 Code § 7316; 1932 Code § 7316; Civ. C. '22 § 4462; Civ. C. '12 § 3039; 1907 (25) 640; 
19S1 (47) 737. 

32 



§ 59-210 Public Works and Certain Public Authorities § 59-221 

§ 59-210. When clerk of court may execute deed. 

When under §§ 59-207 or 59-208 an owner is required to execute his deed 
to a city or town and shall fail or neglect so to do, the clerk of the court of 
common pleas for the county in which the land is situated shall, on behalf 
of the owner, execute a deed, without warranty, for the land to the citj or 
town, which deed shall as effectively bind the owner and his heirs and assigns 
as though executed by the owner. 

1942 Code § 7313; 1932 Code § 7313; Civ. C. '22 § 4459; Civ. C. '12 § 3036; 1907 (25) 640. 

§ 59-211. Recordation of deed and other proceedings. 

Such deed and all proceedings had in such matter shall be recorded by the 
register of mesne conveyances, or the clerk of the court, in the books wherein 
real estate deeds are by law required to be recorded. But this shall not require 
the proceedings of the court to be recorded, but such proceedings shall be 
recorded as are all other civil cases. 

1942 Code § 7313; 1932 Code § 7313; Civ. C. '22 § 4459; Civ. C. '12 § 3036; 1907 (25) 640. 

Article 5. 

Miscellaneous Acquisition and Condemnation Provisions. 

§ 59-221. Cities and towns may acquire lands, etc., for water and electric works. 
Cities and towns may purchase and hold suitable lands and water and erect 
such aqueducts, dams, canals, buildings, machine shops and other works and 
construct and lay such conduits, mains and pipes as may be necessary to 
obtain and secure a supply of water and power for operating such waterworks 
and electric light works. And they may erect poles and wires along any of 
the adjacent highways and in such cities and towns and shall have the right 
to condemn (a) any property and lands, the drainage from which would con- 
taminate the water supply of the city or town, (b) such streams, lakes or lands 
as may be required for the water supply of the city or town or (c) right of way 
to enable them to lay mains and pipes for water, sewerage or drainage, and erect 
and operate such aqueducts, dams, canals and water and electrical works and 
electric lines on paying to the owner thereof just compensation for such prop- 
erty or rights of way to be condemned, such compensation to be determined 
in the manner provided by law for the condemnation of lands and rights of 
way by railroad corporations. 

1942 Code §7293; 1932 Code §7293; Civ. C. '22 §4442; Civ. C. '12 §3019; Civ. C. "02 
§2012; 1896 (22) 83. 

This section does not provide any method property outside of city limits is damaged 

for determining the right to institute such by reason of emptying sewerage pipes into 

proceedings, but once instituted the only stream, thereby contaminating waters, may 

matter to be determined is the amount of have compensation awarded him and the 

compensation. Greenwood v. Yoe, 89 S. remedy of this section is exclusive of a 

C. 24, 71 S. E. 238 (1911). common-law action. Matheny v. Aiken, 68 

Remedy is exclusive for damage to prop- S. C. 163, 47 S. E. 56 (1904). 
erty outside city. — A private person whose 

[6 SC Code]— 3 33 



§ 59-222 Code of Laws of South Carolina § 59-224 

§ 59-222. Condemnation of land for waterworks and to protect water sheds. 

Any municipal corporation in this State desiring to establish waterworks 
or to enlarge or extend such works, whether it owns or operates the plant or 
not, may condemn lands, water rights and water privileges or any other 
property, including existing waterworks or pipe lines, or any part thereof, 
necessary for the purpose of establishing, maintaining, extending or operating 
a waterworks plant for supplying water to such municipal corporation and to 
citizens thereof. But proper compensation shall be first made to the owners 
thereof. Such condemnation shall be made in the same manner as condemna- 
tions are made by railroad corporations. But no municipality shall condemn 
any such waterworks during the life of any franchise granted by such munic- 
ipality for the operation of such waterworks and while they are being operated 
under such franchise, nor when by contract there shall be any other method 
of valuation for the purpose of acquisition by such municipality upon the ex- 
piration of such franchise, except that such condemnation proceedings may be 
had during the last year of the term of such franchise to take effect by the 
transfer of title and possession immediately upon the expiration of such fran- 
chise. Any such corporation may also enter upon and condemn lands and 
tenements for the purpose of protecting the water sheds from contamination, 
nuisances or any condition which may be a menace to the public health, upon 
proper compensation being first made to the owner thereof. 

1942 Code §7302; 1932 Code §7302; Civ. C. '22 §4450; Civ. C. '12 §3027; 1905 (24) 
867; 1914 (28) 499; 1916 (29) 941. 

Constitutionality. — As to the constitution- pealed, see Paris Mt. Water Co. v. Green- 
ality of this section when construed with ville, 110 S. C. 36, 96 S. E. 545 (1918). 
a section of the Code of 1912, since re- 

§ 59-223. Procedure in such cases. 

The condemnation in any case referred to in § 59-222 shall be made in the 
same manner as provided for railroad corporations in article 8 of chapter 10 of 
Title 58, except that the jury of condemnation may give special damages to the 
owner of the property condemned, as well as actual damages. 

1942 Code § 7305; 1932 Code § 7305; Civ. C. '22 § 4453; Civ. C. '12 § 3030; 1905 (24) 867. 

§ 59-224. Drains for surface water. 

Whenever, within the boundaries- of any municipality, it shall be necessary 
or desirable to carry off the surface water from any street, alley or other public 
thoroughfare along such thoroughfare rather than over private lands adjacent 
to or adjoining such thoroughfare, such municipality shall, upon demand 
from the owner of such private lands, provide sufficient drainage for such 
water through open or covered drains, except when the formation of the street 
renders it impracticable, along or under such streets, alleys or other thorough- 
fare in such manner as to prevent the passage of such water over such private 
lands or property. But if such drains cannot be had along or under such 
streets, alleys or other thoroughfare, the municipal authorities may obtain, 
under proper proceedings for condemnation as for highways on payment of 
damages to the landowner, a right of way through the lands of such landowner 

34 [6SCCode] 



§59-225 Public Works and Certain Public Authorities §59-241 

for the necessary drains for such drainage. If any municipal corporation in 
this State shall fail or refuse to carry out the provisions of this section, any 
person injured thereby may have and maintain an action against such munic- 
ipality for the actual damages sustained by such person. 

1942 Code §7301; 1932 Code §7301; Civ. C. '22 §4449; Civ. C. '12 §3026; 1902 (23) 1038. 

City is liable for injury caused by negli- 245, 399 (1908); as to sufficiency of proof 

gent construction of drain pipes. Mayrant of city's negligence to take case to jury, 

v. Columbia, 77 S. C. 281, 57 S. E. 857 see Macedonia Baptist Church v. Columbia, 

(1907). 195 S. C. 59, 10 S. E. (2d) 350 (1940). 

For additional related cases, as to allega- Cited in Faust v. Richland County, 117 

tions of damage from surface water, see S. C. 251, 109 S. E. 151 (1921); Triplett v. 

Columbia v. Melton, 81 S. C. 356, 62 S. E. Columbia, 111 S. C. 7, 96 S. E. 675 (1918). 

§ 59-225. Condemnation for use of another corporation. 

When any lands are condemned by a municipal corporation for the use of a 
corporation other than itself, such other corporation shall pay all the costs 
and expenses incurred in such condemnation, together with all damages which 
may be assessed in favor of the landowner under such condemnation proceed- 
ings, as well as all damages that may be recovered against such municipality 
in any court of competent jurisdiction by anyone injured or damaged by such 
condemnation. If in any such case the ingress or egress from the lands of 
any person be cut off, such corporation shall open, construct and maintain a 
convenient means of ingress and egress to the lands so cut off. No such con- 
demnation shall be had for the benefit of any corporation unless it is made to 
appear to the satisfaction of the city or town council that the land sought to 
be condemned is necessary for the proper use and maintenance of a water- 
works or for the proper protection of the health of the citizens of such munic- 
ipality, the city or town council of such municipality to determine the question 
as to whether such land is necessary for the proper use and maintenance of 
such waterworks or for the proper protection of the health of such municipal- 
ity. 

1942 Code § 7304; 1932 Code § 7304; Civ. C. '22 § 4452; Civ. C. '12 § 3029; 1905 (24) 867. 

Constitutionality.— See note to § 59-222. 

§ 59-226. Local residents may not serve on condemnation jury. 

In all condemnation proceedings no person living in the city or town affected 
shall be eligible to serve on the jury of condemnation. 

1942 Code § 7306; 1932 Code § 7306; Civ. C. '22 § 4454; 1916 (29) 941. 

Article 6. 

Municipal Utilities Generally. 

§ 59-241. Construction and operation of municipal utilities. 

Any city or town may : 

(1) Construct, purchase, operate and maintain waterworks and electric light 
works within or without, or partially within and partially without, their cor- 
porate limits for the use and benefit of such city or town and the inhabitants 
thereof; 

35 



§ 59-241 



Code of Laws of South Carolina 



§ 59-241 



(2) Purchase, own, operate and maintain machinery, equipment and ap- 
paratus for generating either electricity or gas for the use and benefit of such 
city or town and the inhabitants thereof; 

(3) Acquire existing waterworks by condemnation in the manner provided 
by law for railroad corporations to acquire rights of way ; or 

(4) Contract for the erection of plants for waterworks, sewerage or lighting 
purposes, one or all, for the use of such cities and towns, and the inhabitants 
thereof ; and 

(5) Sell, convey and dispose of any and all such properties, any such sale, 
conveyance or disposal of an electric light plant or water system, however, 
to be made under the provisions of article 11 of this chapter and not under the 
succeeding provisions of this article. 

1942 Code §7280; 1932 Code §7280; Civ. C. '22 §4430; Civ. C. '12 §3015; Civ. C. '02 
§2008; 1899 (23) 49; 1914 (28) 511; 1915 (29) 53; 1916 (29) 939; 1920 (31) 767, 797; 
1922 (32) 953. 



This article is in effect an amendment to 
charters limiting the indebtedness of cities. 
Todd v. Laurens, 48 S. C. 395, 26 S. E. 682 
(1897). 

Waterworks are for benefit of cities. — 
Construction and operation of municipal 
waterworks should be "for the use and ben- 
efit of said cities and towns and its citizens." 
Childs v. Columbia, 87 S. C. 566, 70 S. E. 
396 (1911). 

City may purchase waterworks plant. — ■ 
South Carolina Const., Art. 8, § 5, expressly 
empowers a city to buy waterworks plant 
and this section, enacted to carry out such 
provision, is sufficient when considered with 
the Constitution, though it does not use 
the word "purchase." Enterprise Real Es- 
state Co. v. City Council, 107 S. C. 492, 93 
S. E. 184 (1917). See also, Dick v. Scar- 
borough, 73 S. C. 150, 53 S. E. 86 (1905). 

And may lease such plant. — Power to 
lease waterworks plant and equipment is 
conferred on city by this section since grant 
of power to sell necessarily carries with it 
grant of power to transfer an interest less 
than an absolute one. Green v. Rock Hill, 
149 S. C. 234, 147 S. E. 346 (1929). 

And private company may operate such 
plant. — City's agreement whereby a com- 
pany should manage and operate the water 
supply system is not invalid as involving 
exercise of power of taxation for private 
purpose. Green v. Rock Hill, 149 S. C. 234, 
147 S. E. 346 (1929). 

Title acquired is not specified. — This sec- 
tion does not specify the title that a town 
shall acquire and a reasonable construction 
is that the reference to the railroad statute 
is only for the purpose of procedure. Green- 
wood Count v v. Watkins, 196 S. C. 51, 12 
S. E. (2d) 545 (1940). 



Courts are to determine reasonableness 
of charges. — A demurrer to a complaint by 
a city to restrain its board of public works 
from cutting off water and electric lights 
from the city on account of the refusal of 
the council to pay charges arbitrarily fixed 
by the board, the amount of which was in 
dispute between the board and the council, 
was improperly sustained, it being the duty 
of the board to resort to the courts to de- 
termine the reasonableness of the charges 
in view of this and related sections. Union 
v. Board of Com'rs, 91 S. C. 248, 74 S. E. 
496 (1912). 

Remedy for damage to property outside 
city. — Under this section and § 59-221, pri- 
vate persons whose property outside of the 
city limits is damaged by reason of empty- 
ing sewerage pipes into a stream, thereby 
contaminating the waters, may have com- 
pensation. Matheny v. Aiken, 68 S. C. 163, 
47 S. E. 56 (1904). 

Such remedy is exclusive of a common- 
law action. Matheny v. Aiken, 68 S. C. 163, 
47 S. E. 56 (1904). 

For additional related cases, as to rule 
for determining whether the constitutional 
limit has been exceeded, see Todd v. Lau- 
rens, 48 S. C. 395, 26 S. E. 682 (1897); 
as to election of sewerage commission, see 
State v. Young, 66 S. C. 115, 44 S. E. 586 
(1903); Ancrum v. Camden Water, etc., 
Co., 82 S. C. 284, 64 S. E. 151 (1909); 
Childs v. Columbia, 87 S. C. 566, 70 S. E. 
296 (1911); as to application of earlier pro- 
visions of section, see Scegers v. Gibbes, 
72 S. C. 532, 52 S. E. 586 (1905). See also, 
Harby v. Jennings, 112 S. C. 479, 101 S. E. 
649 (1919); Paris Alt. Water Co. v. Green- 
ville, 110 S. C. 36, 96 S. E. 545 (1918). 
Applied iu Waits v. Ninety-Six, 154 S. C. 

36 



§ 59-242 



Public Works and CV.kt.wn Public Authorities 



§ 59-245 



350, 151 S. E. 576 (1930); Black v. Kish- 
burne, 84 S. C. 451, 66 S. E. 681 (1910). 

Cited in Peoples v. South Carolina Tower 
Co., 166 S. C. 150, 164 S. E. 605 (1932); 

§ 59-242. Blank. 



Williams v. Rock Hill, 177 S. C. 82, 180 S. 
E. 799 (1935); Simons v. City Council, 181 
S. C. 353, 187 S. E. 545 (1936). 



§ 59-243. Election prerequisite to action under article. 

Before such construction, purchase, sale, conveyance or disposal of any such 

property, or any part thereof, shall he made under the provisions of this article, 

the city or town council of the municipality shall submit the question of such 

construction, purchase, sale, conveyance or disposal to the qualified registered 

electors of the city or town at an election to be ordered for that purpose by 

the city or town council and to be conducted in accordance with the laws 

governing municipal elections. 

1942 Code §7280; 1932 Code §7280; Civ. C. '22 §4430; Civ. C. '12 §3015; Civ. C. '02 
§2008; 1899 (23) 49; 1914 (28) 511; 1915 (29) 53; 1916 (29) 939; 1920 (31) 767, 797; 
1922 (32) 953. 



Notes issued without election are unau- 
thorized. — Issuance of notes by commis- 
sioners of public works for waterworks sys- 
tem, with concurrence of city council, but 
without special election, is unauthorized un- 
der this and related sections. Hyans v. 
Carroll, 146 S. C. 470. 144 S. E. 153 (1928). 

Separate vote for different plants is re- 
quired. — This section requires an oppor- 
tunity to vote separately upon the issuance 
of bonds for either a waterworks or sewer- 
age or lighting plant and an election not 
submitting separately the questions of is- 
suing bonds for a waterworks and for a 
sewerage svstem is void. Johnson v. Rod- 
dey, 83 S. C. 462, 65 S. E. 626 (1909). 

Under this section the question of issu- 
ing bonds for the construction of a water- 
works plant and for the construction of an 
electric light plant must be separately sub- 



mitted and when they were submitted to- 
gether without opportunity to vote on each 
separately the city had no authority to is- 
sue bonds. State v. Brasington, 93 S. C. 
447, 76 S. E. 1086 (1913). 

But purchase of plant and issue of bonds 
were properly submitted together. — By 
the terms of the 1922 amendment it was 
entirely right, proper and legal for city 
council to submit to the voters in the elec- 
tion as one question only the matter of the 
purchase of the waterworks plant and the 
issue of the bonds to make payment of the 
purchase price. McDaniel v. Bristol, 160 
S. C. 408, 158 S. E. 804 (1931). 

For additional related cases, as to elec- 
tions, see McWhirter v. Newberry, 47 S. 
C. 418, 25 S. E. 216 (1896); Cleveland v. 
City Council, 54 S. C. 83, 31 S. E. 871 
(1899). 



§ 59-244. Election prerequisite to condemnation of waterworks. 

Proceedings to condemn existing waterworks shall not be instituted until 
after an election ordered by the city or town council upon thirty days' notice 
shall have determined, by a majority of the qualified electors of the city or 
town, the policy of the city or town in favor of municipal ownership of water- 
works. 

1942 Code §§7280, 7306; 1932 Code §§7280, 7306; Civ. C. '22 §§4430, 4454; Civ. C. '12 
§3015; Civ. C. '02 §2008; 1899 (23) 49; 1914 (28) 511; 1915 (29) 53; 1916 (29) 939, 941; 
1920 (31) 767, 797; 1922 (32) 953. 



§ 59-245. Petition prerequisite to election. 

Before any election shall be held under the provisions of this article at least 
the majority of the freeholders of the city or town, as shown by its tax books, 
shall petition the city or town council that such election be ordered. 

37 



§ 59-246 Code of Laws of South Carolina § 59-361 

1942 Code §7280; 1932 Code §7280; Civ. C. '22 §4430; Civ. C. '12 §3015; Civ. C. '02 
§2008; 1899 (23) 49; 1914 (28) 511; 1915 (29) 53; 1916 (29) 939; 1920 (31) 767, 797; 
1922 (32) 953; 1947 (45) 175. 

This petition is a condition added to S. C. 
Const., Art. 8, § 5. Acker v. Cooley, 177 S. 
C. 144, 181 S. E. 10 (1934). 

§ 59-246. Question may refer to issue of revenue bonds. 

Any question set forth in any petition for an election on the question of a 
city or town acquiring, by construction or purchase, and operating a water- 
works system, presented and filed pursuant to § 59-245, may, but need not, 
state that the cost of constructing or purchasing the waterworks system de- 
scribed in such question shall be met by the issuance of bonds payable solely 
from the revenues derived from the operation of such system. 

1942 Code §7280-1; 1935 (39) 2. 

§ 59-247. Action if election favorable. 

If a majority of the electors voting in such election shall vote for the con- 
struction or purchase of such property in question, the city or town council 
shall so declare by ordinance and shall acquire the property. And if a majority 
of the electors voting in any such election shall vote for the sale of the property 
in question, the city or town council shall sell, convey and transfer the same 
as so authorized. 

1942 Code §7280; 1932 Code §7280; Civ. C. '22 §4430; Civ. C. '12 §3015; Civ. C. '02 
§2008; 1899 (23) 49; 1914 (28) 511; 1915 (29) 53; 1916 (29) 939; 1920 (31) 767, 797; 
1922 (32) 953. 

§ 59-248. Furnishing water for compensation. 

Any city or town may, after acquiring a waterworks system under the 
provisions of this article, furnish water to persons for reasonable compen- 
sation. 

1942 Code §7280-1; 1935 (.39) 2. 

Article 7. 
Blank. 

Article 8. 
Blank. 

Article 9. 
Revenue Bond Act for Utilities. 

§ 59-361. "Borrower" defined. 

The word "borrozver" as used in this article shall be construed to mean the 
municipality operating under this article. 

1942 Code §9245; 1933 (38) 411. 

38 



§ 59-362 Public Works and Certain Public Authorities § 59-365 

§ 59-362. "Governing body" defined. 

The term "governing body" as used in this article shall be construed to mean, 
in the case of a county, the board of county commissioners or other like gov- 
erning body thereof, in the case of a city or incorporated town, the board of 
commissioners, the mayor and council or other like governing body thereof 
and, in the case of a township, the board of county commissioners or other 
governing body of the county in which the township is located. 

1942 Code §9246; 1933 (38) 411. 

§ 59-363. Definition of "municipality." 

As used in this article the term "municipality" shall, unless the context other- 
wise indicates, include counties, townships, cities, incorporated towns, school 
districts and other political subdivisions of the State. 

1942 Code §9240; 1933 (38) 411; 1934 (38) 1306, 1392; 1935 (39) 494, 1088. 

§ 59-364. Meaning of "system." 

The word "system" as used in this article shall include all of the projects 
and undertakings referred to in § 59-365. The water and sewer systems of 
any municipality shall constitute one system and any two or more projects 
or undertakings described in § 59-365 which are in any way related, as in the 
case of a water works system and a sewer system, may be deemed a single 
system or project for the purposes of this article if the governing body of the 
municipality establishing it shall so determine either in the ordinance authoriz- 
ing the issuance of bonds pursuant to this article or in any other ordinance 
passed prior to the issuance of the bonds. 

1942 Code §9240; 1933 (38) 411; 1934 (38) 1306, 1392; 1935 (39) 494, 1088. 

§ 59-365. Public works authorized under article. 

Any municipality of this State may purchase or construct a waterworks 
system, water supply system, sewer system, sanitary disposal equipment 
and appliances, light plant or system, natural gas system, ice plants, power 
plants and/or distribution systems, gas plants, incinerator plants, hospitals, 
piers, docks, terminals, air ports, toll bridges, ferries, drainage systems, city 
halls, courthouses, armories, fire stations, auditoriums, hotels, municipal build- 
ings, theatres, community auditoriums and hotels, city halls and hotels, public 
markets, public recreation parks, swimming pools, golf courses, stadiums, 
school auditoriums, gymnasiums or teacherages, cemeteries, parking buildings, 
parking lots, curb markets or other public buildings or structures and in fur- 
therance thereof may purchase or construct any necessary part of any such 
system, either within or without the limits of such county or the corporate 
limits of such city or incorporated town. A county may under this article 
develop a courthouse and office building combined or a courthouse and jail 
combined. Curb markets may be purchased or constructed alone or as a 
single system together with parking lots for vehicles or together with buildings 
for storage or for rental either as space or as stores or offices, or together with 
both such parking lots and buildings. 

39 



§ 59-366 Code of Laws of South Carolina § 59-369 

1942 Code §9240; 1933 (38) 411; 1934 (38) 1306, 1392; 1935 (39) 494, 1088; 1949 (46) 
103; 1950 (46) 1864. 

Operation of electric system is proper islature to confer similar rights upon coun- 
county function. — Erection, maintenance ties. Park v. Greenwood County, 174 S. C. 
and operation of a hydroelectric system are 35, 176 S. E. 870 (1934). 
within the proper corporate purposes of a Legislature's finding is entitled to weight, 
county and revenue bonds, issued for the — Legislature's finding, by enactment of 
construction of a plant, are valid obligations statutes authorizing counties to erect and 
of county. Park v. Greenwood County, 174 operate electric light plants, that creation 
S. C. 35, 176 S. E. 870 (1934). and operation thereof are proper public pur- 
Revenue bonds are not debts. — County poses is entitled to much weight, though 
revenue bonds, issued to pay for construe- not conclusive on court. Park v. Green- 
tion of county hydroelectric plant, are not wood County, 174 S. C. 35, 176 S. E. 870 
debts within constitutional limitations. (1934). 

Park v. Greenwood County, 174 S. C. 35, County may sell power outside its limits. 
176 S. E. 870 (1934). — Validity of county's project to construct 
Legislature may confer similar rights on and operate electric light plant is not affect- 
cities and counties. — The right given to cit- ed by fact that it may sell some power out- 
ies and towns to establish and operate light- side its territorial limits. Park v. Green- 
ing plants by S. C. Const., Art. 8, § 5, does wood County, 174 S. C. 35, 176 S. E. 870 
not affect in any way the power of the leg- (1934). 

§ 59-366. Joint projects. 

Any municipalities desiring to obtain the benefit of the provisions of this 
article through uniting or cooperating in joint projects or undertakings serving 
joint community interests may co-operate with each other under agreements 
made by their governing authorities through resolutions or ordinances either 
with or without statutory enactments creating new districts for the purpose 
of such projects. 

1942 Code §9240; 1933 (38) 411; 1934 (38) 1306, 1392; 1935 (39) 494, 1088. 

§ 59-367. Improvement of existing system. 

Any municipality which may own and operate any such system may im- 
prove, enlarge, extend or repair it. 

1942 Code §9240; 1933 (38) 411; 1934 (38) 1306, 1392; 1935 (39) 494, 1088. 

§ 59-368. Construction on private property. 

In the case of waterworks and sewerage systems any such municipality 
may construct mains and pipe lines, bath rooms, bath houses or toilet houses 
and fixtures therein and locate and maintain them on private property if it 
shall accjuire the right so to do by easement, lease or otherwise. 

1942 Code §9240; 1933 (38) 411; 1934 (38) 1306, 1392; 1935 (39) 494, 1088. 

§ 59-369. Construction and operation of works; acquisition of property. 

Any municipality in the State may construct, acquire, own, equip, operate, 
maintain, enlarge, extend or increase any of the works described in § 59-365, 
together with all appurtenances necessary, useful or convenient for the main- 
tenance and operation of such works, and may acquire by gift, grant, purchase, 
condemnation or otherwise all necessary land, rights, easements, franchises or 
other property therefor within or without the limits of such municipality in the 

40 



§59-370 Public Works and Certain Public Authorities §59-371 

county in which it is situate and. 'or in any adjoining county or counties. Title 
to property shall be taken in the name of the municipality. 

1942 Code §§9242, 9243; 1933 (38) 411; 1934 (38) 1543; 1951 (47) 182. 

§ 59-370. Condemnation of property. 

Any municipality may condemn any such works to be acquired and any 
land, rights, easements, franchises or other property, real or personal, deemed 
necessary or convenient for the construction of any such works or for exten- 
sions, improvements or additions thereto and such right shall extend to any 
such property in the county in which the municipality is situate and/or any 
adjoining county or counties and wdiere the condemning municipality is a 
county such right shall extend to property within such county and to prop- 
erty in adjoining counties and in connection therewith any such municipality 
shall have all the rights, powers and privileges of eminent domain granted 
to municipalities under the laws relating thereto. If the project or work un- 
dertaken is for the establishment of a natural gas system, the municipality 
may exercise the power of condemnation in order to connect with the source 
of supply even though in so doing it shall become necessary to condemn lands, 
properties or rights of way in counties which do not adjoin the county in 
which the municipality is situated. 

1942 Code §§9242, 9243; 1933 (38) 411; 1934 (38) 1543; 1951 (47) 182. 

Section must be construed with other con- lowed is that of the general condemnation 

demnation provisions. — Greenwood County statute, commonly known as the railroad 

v. Watkins, 196 S. C. 51, 12 S. E. (2d) 545 statute, now embodied as §§ 58-771 and 58- 

(1940). 773. Greenwood County v. Watkins, 196 

And the title acquired in a condemnation S. C. 51, 12 S. E. (2d) 545 (1940). 

proceeding by a municipality under this sec- County may acquire fee simple title. — 

tion must be referred to §§ 59-203 and 59- Where it was contended that a county seek- 

207. Greenwood County v. Watkins, 196 S. ing to condemn land for a hydroelectric 

C. 51, 12 S. E. (2d) 545 (1940). project obtained only an easement, it was 

Powers conferred are those of eminent held that under this section the county was 
domain. — The powers of condemnation con- given the right to acquire the fee simple 
ferred by this section are all rights, powers title to any land deemed necessary or con- 
and privileges of eminent domain granted venient in making the development. Green- 
to municipalities under the laws relating wood County v. Watkins, 196 S. C. 51, 12 
thereto, whereas, the procedure to be fol- S. E. (2d) 545 (1940). 

§ 59-371. Condemnation procedure ; requirement of security. 

Proceedings for such appropriation of property shall be under and pursuant 
to the general provisions of law relating to condemnation proceedings in 
the exercise of the right of eminent domain. In any such proceedings such 
orders may be made as may be just to the municipality and to the owner of 
the property to be condemned and an undertaking or other security may be 
required securing such owner against any loss or damage which may be sus- 
tained by reason of the failure of the municipality to accept and pay for the 
property; but such undertaking or security shall impose no liability upon 
the municipality except such as may be paid from the funds provided under 
the authority of this article. 

1942 Code §9243; 1933 (38) 411; 1934 (38) 1543. 

41 



§ 59-372 Code of Laws of South Carolina § 59-376 

§ 59-372. Municipality not bound ; source of payment. 

The municipality shall be under no obligation to accept and pay for any 
property condemned and shall in no event pay for any property condemned 
or purchased except from the funds provided pursuant to this article. 

1942 Code §9243; 1933 (38) 411; 1934 (38) 1543. 

§ 59-373. Option or contract of purchase. 

In the event of the acquisition by purchase the governing body may obtain 
and exercise an option from the owner of the property for the purchase thereof 
and may enter into a contract for the purchase thereof. Any such purchase 
may be made upon such terms and conditions and in such manner as the 
governing body may deem proper. But the exercise of an option to purchase 
or the entry into a contract for such purchase shall in no event bind or obli- 
gate the municipality or create any debt, liability or claim except such as may 
be paid from the funds provided under the authority of this article. 

1942 Code §9243; 1933 (38) 411; 1934 (38) 1543. 

§ 59-374. Estimate of cost of system. 

Whenever the governing body of any borrower shall determine to purchase, 
construct, improve, enlarge, extend or repair any system named in § 59-365 
under the provisions of this article, it shall first cause an estimate to be made 
of the cost thereof and the fact that such estimate has been made and the 
amount thereof shall appear in the ordinance authorizing and providing for 
the issuance of the bonds. 

1942 Code §9247; 1933 (38) 411. 

§ 59-375. Estimate of repairs, etc., when existing works acquired. 

In the event of the acquisition by purchase or condemnation of any works 
already constructed the governing body, at or before the time of the adoption 
of the ordinance or resolution described in § 59-376, shall cause to be determined 
what repairs, replacements, additions and betterments will be necessary in 
order that such works may be effective for their purpose, and an estimate of 
the cost of such improvements shall be included in the estimate of the cost 
required by § 59-374 and such improvements shall be made upon the acquisition 
of the works and as a part of the cost thereof. 

1942 Code §9243; 1933 (38) 411; 1934 (38) 1543. 

§ 59-376. Ordinances or resolutions for purpose of article. 

For the purposes of this article any borrower may adopt an ordinance pro- 
viding for the issuance of revenue bonds as herein stated and any and all 
other appropriate ordinances and resolutions deemed necessary to effectuate 
the full intent and purpose of this article, including the segregation of reve- 
nues derived from the operation of any project named in § 59-365, the deter- 
mination, fixation and revision from time to time of rates to be charged for 
services, the protection of the properties, the adequate operation thereof, and 
the insurance of the security of the bonds. 

1942 Code §9248; 1933 (38) 411. 

42 



§ 59-377 Public Works and Certain Public Authorities § 59-381 

§ 59-377. Exercise of powers by counties and townships. 

The powers conferred by this article on counties and townships may be 
exercised by resolution of the governing body of the county or the governing 
body of the county in which the township is situate. Such resolution may be 
adopted in accordance with the required or customary procedure of such 
body and may be amended by like resolution so adopted and no such resolu- 
tion shall be subject to the provisions of any law relating to the adoption of 
ordinances by cities nor shall any resolution require the use of general funds 
or the levy of taxes for any of the purposes of this article. Such ordinances 
and resolutions of counties shall be recorded in the minutes of the governing 
body thereof as soon as practicable after their passage and shall be authen- 
ticated by the signature of the clerk of such governing body. Any such ordi- 
nances or resolutions of counties may be published in a newspaper of general 
circulation in such county. 

1942 Code §§9248, 9277; 1933 (38) 411; 1934 (38) 1392. 

§ 59-378. Acceptance of Federal loans and grants. 

Any municipality desiring to borrow money and issue bonds under this 
article may borrow such money from any Federal agency and may accept loans 
and grants from such agency and execute any agreements within the author- 
ity of this article and do all things necessary and convenient for such purpose. 

1942 Code §9278; 1934 (38) 1392. 

§ 59-379. Bond issues authorized. 

For the purpose of defraying the cost of purchasing, constructing, improv- 
ing, enlarging, extending or repairing any system or project of any character 
mentioned in § 59-365 and, when the borrower is a city having a population 
of more than five thousand people and less than five thousand five hundred 
people according to the United States Census of 1930, for the purpose of re- 
funding temporary loans made for the purpose of financing the cost of pur- 
chasing, constructing, improving, enlarging, extending or repairing any such 
system or project, any borrower may borrow money and issue its negotiable 
serial bonds. 

1942 Code §9249; 1933 (38) 411; 1937 (40) 483; 1939 (41) 153, 344. 

§ 59-380. Bonds not subject to certain limitations. 

The bonds authorized hereunder shall not be subject to any limitations or 
provisions of the municipal bond laws or the bond laws for counties. 

1942 Code §9253; 1933 (38) 411. 

§ 59-381. Ordinance before bond issue. 

No such bonds shall be issued until authorized by an ordinance or resolution 
which shall set forth a brief description of the contemplated or completed im- 
provement, the estimated cost thereof and the amount, maximum rate of 
interest, time and place of payment and other details in connection with the 
issuance of the bonds. 

1942 Code §9249; 1933 (38) 411; 1937 (40) 483; 1939 (41) 153, 344. 

43 



§ 59-382 Code of Laws of South Carolina § 59-385 

§ 59-382. Terms, form and execution of bonds. 

Such serial bonds shall bear interest at not more than six per cent per annum, 
payable semiannually, and shall be payable at such times, not exceeding forty- 
five years from their date, and at such places as shall be prescribed in the 
ordinance or resolution providing for their issuance. The bonds and their 
coupons shall be made payable in lawful money of the United States. The 
bonds shall mature annually or semiannually, and the first installment thereof 
shall be made payable not more than five years from the date thereof. The 
principal of and interest upon such bonds shall be payable solely from the 
revenues derived from the operation of the system or project for the purchase, 
construction, improvement, enlargement, extension or repair of which they are 
issued except that when a borrower improves, enlarges, extends or repairs 
any system or project named in § 59-365 the principal of and interest upon 
such bonds may be made payable from the revenues derived from the opera- 
tion of the entire system or project. No bonds or coupon issued pursuant to 
this article shall constitute an indebtedness of the borrower within the mean- 
ing of any State constitutional provision or statutory limitations. It shall be 
plainly stated on the face of each such bond and coupon that it has been issued 
under the provisions of this article and that it does not constitute an indebted- 
ness of the borrower within any State constitutional provisions or statutory 
limitation. 

The bonds and coupons shall be executed in such manner and shall be sub- 
stantially in the form provided in the authorizing ordinance or resolution. 

1942 Code §9249; 1933 (38) 411; 1937 (40) 483; 1939 (41) 153, 344. 

§ 59-383. Undelivered bonds executed by ex-officers valid. 

In case any of the officers whose signatures or countersignatures appear on 
the bonds or coupons shall cease to be such officers before delivery of such 
bonds, such signatures or countersignatures shall nevertheless be valid and 
sufficient for all purposes as if such officers had remained in office until such 
delivery. 

1942 Code §9259; 1933 (38) 411. 

§ 59-384. Bonds negotiable. 

Such bonds shall have all the qualities of negotiable instruments under the 
law merchant and the negotiable instruments law. 

1942 Code § 9256; 1933 (38) 411. 

§ 59-385. Bonds tax exempt. 

The bonds and interest coupons issued hereunder are hereby exempted 
from any and all State, county, municipal and other taxation whatsoever un- 
der the laws of this State and it shall be plainly stated on the face of each 
such bond as follows : "The principal of and interest on this bond are exempted 
from any and all State, county, municipal and other taxation whatsoever un- 
der the laws of the State of South Carolina." 

1942 Code §9255; 1933 (38) 411. 

44 



§ 59-386 Public Works and Certain Public Authorities § 59-389 

§ 59-386. Sale of bonds. 

Such bonds shall be sold in such manner and upon such terms as the govern- 
ing body shall deem for the best interest of the borrower. In no event shall 
any of the bonds be sold on a basis to yield more than six per cent per annum 
from the date of sale to the date of average maturity of the bonds sold. 

In any contract for the purchase or construction of any system or project 
named in § 59-365 or for the improvement, enlargement, extension or repair of 
any such system or project provision may be made that payment therefor shall 
be made in such bonds. 

1942 Code §9249; 1933 (38) 411; 1937 (40) 483; 1939 (41) 153, 344. 

§ 59-387. Bonds legal investments. 

Bonds issued under the provisions of this article are legal investments for 
executors, administrators, trustees and other fiduciaries and for savings banks 
and insurance companies organized under the laws of this State. 

1942 Code §9254; 1933 (38) 411. 

§ 59-388. Deposit of proceeds from bonds ; security therefor. 

The governing body, when practicable, shall require that the proceeds ol 
the sale of bonds issued under the provisions of this article be deposited in a 
special account or accounts in a bank or banks which are members of the 
federal reserve system and shall require, insofar as practicable, that each 
such deposit be secured by United States Government securities having an 
aggregate market value at least equal to the sum at the time on deposit or, in 
any event, the proceeds shall be deposited in some bank or other depository, 
either within or without the State, which will secure such deposit satisfactorily 
to the governing body. 

1942 Code §9257; 1933 (38) 411. 

§ 59-389. Use of proceeds from bonds. 

All moneys received from any such bonds shall be used solely for the pur- 
chase, construction, improvement, enlargement, extension or repair of the 
system, project or combined system for which the bonds were issued, in- 
cluding any engineering, legal and other expenses incident thereto, and to 
advance the payment of the interest on the bonds during the first three years 
following the date of the bonds. Any unexpended balance of the proceeds of 
■the sale of any such bonds remaining after the completion of the project for 
which the bonds were issued shall be paid immediately into the bond and 
interest redemption fund for such bonds and shall be used only for the pay- 
ment of the principal of the bonds or, in the alternative, to acquire outstanding 
bonds of the general issue from which the proceeds were derived by purchase 
of such bonds at a price (exclusive of accrued interest) not exceeding the face 
amount thereof. Any bonds so acquired by purchase shall be cancelled and 
shall not be reissued. 

1942 Code §9258; 1933 (38) 411. 

45 



§ 59-390 Code of Laws of South Carolina § 59-394 

§ 59-390. Payment of bonds before maturities. 

The governing body of the borrower authorizing bonds issued under the 
provisions of this article may make provision for any of such bonds to be 
called for payment on any interest payment date before maturity provided 
the borrower shall have on hand in its bond and interest redemption fund 
sufficient moneys, not otherwise appropriated or pledged, in excess of the 
interest and principal requirements within the next two succeeding calendar, 
operating or fiscal years. 

1942 Code §9272; 1933 (38) 411. 

§ 59-391. Statutory lien of bond holders on system. 

There shall be created in the authorizing ordinance a statutory lien upon 
any such system or project and the appurtenances and extensions thereto so 
to be purchased, constructed, improved, enlarged, extended or repaired to and 
in favor of the holders of the bonds and each of them and to and in favor of 
the holders of the coupons of the bonds and each of them ; provided, however, 
that when a borrower purchases, constructs, improves, enlarges, extends or 
repairs any system or project named in § 59-365 such statutory lien may be 
created and declared to be upon the whole of such combined system or project 
with appurtenances and extensions thereto, if the governing body so deter- 
mines. 

1942 Code §9250; 1933 (38) 411. 

§ 59-392. Pledge of water revenues for water and / or sewer system. 

Any municipality may pledge the revenues of its water system for the con- 
struction or enlargement of its sewer system and/or its water system. 
1942 Code §9240; 1933 (38) 411; 1934 (38) 1306, 1392; 1935 (39) 494, 1088. 

§ 59-393. Enforcement of lien of bond holders. 

Such system, project or combined system so purchased, constructed, im- 
proved, enlarged, extended or repaired shall remain subject to such statutory 
lien until payment in full of the principal of and interest upon the bonds. Any 
holder of any of such bonds or of any of the coupons representing interest 
accrued thereon may, either at law or in equity, by suit, action, mandamus or 
other proceedings, protect and enforce such statutory lien and may, by suit, 
action, mandamus or other proceedings, enforce and compel performance of 
all duties of the officials of the borrower, including the fixing of sufficient 
rates, the collection of revenues, the proper segregation of the revenues of 
the project or combined system and the proper application thereof. But such 
statutory lien shall not be construed to give any such bond or coupon holder 
authority to compel the sale of the project or combined system or any part 
thereof. 

1942 Code §9251; 1933 (38) 411. 

§ 59-394. Receiver. 

If there be any default in the payment of the principal of or interest upon 
any of the bonds any court having jurisdiction in any proper action may ap- 

46 



§59-395 Public Works and Certain Public Authorities §59-397 

point a receiver to administer and operate the system, project or combined 
system so encumbered on behalf of the borrower with power to fix and charge 
rates and collect revenues sufficient to provide for the payment of any bonds 
or other obligations outstanding against the system, project or combined 
system and for the payment of the expenses of operating and maintaining it 
and to apply the income and revenues of the system, project or combined sys- 
tem in conformity with this article and the ordinance providing for the issu- 
ance of the bonds. 

1942 Code §9252; 1933 (38) 411. 

§ 59-395. Additional bonds for further improvements. 

Any borrower having (a) purchased, constructed, improved, enlarged or 
repaired any such system, project or combined system pursuant to the pro- 
visions of this article, (b) issued bonds for any such purpose and (c) failed 
to provide in the authorizing ordinance for additional bonds for additional 
construction, improvement, enlargement or repair of such system, project or 
combined system may, by ordinance, provide for the issuance of additional 
bonds for further improvement, enlargement, extension or repair of any 
such system, project or combined system. Such additional bonds, when so 
issued and negotiated, shall rank junior in standing to the prior issue or issues 
of bonds for such system, project or combined system and shall so state on 
the face of the bonds. 

1942 Code §9261; 1933 (38) 411; 1945 (44) 269. 

§ 59-396. Revenue refunding bonds. 

When a borrower has outstanding any bonds issued under the provisions 
of this article, it may thereafter issue and negotiate new bonds on such terms 
as the governing body shall deem advisable for the purpose of providing for 
the payment of any such outstanding bonds. Such new bonds shall be desig- 
nated "revenue refunding bonds" and shall be secured to the same extent and 
shall have the same source of payment as the bonds which have been thereby 
refunded. 

1942 Code §9262; 1933 (38) 411. 

§ 59-397. Rates for service. 

Rates for services furnished by any such system, project or combined system 
shall be fixed prior to the issuance of the bonds. Such rates shall be sufficient 
to provide for the payment of the interest upon and the principal of all such 
bonds as and when they become due and payable, to create a bond and interest 
redemption fund therefor, to provide for the payment of the expenses of ad- 
ministration and operation and such expenses for maintenance of the system, 
project or combined system as are necessary to preserve it in good repair 
and working order, to build up a reserve for depreciation of the existing system, 
project or combined system and to build up a reserve for improvements, bet- 
terments and extensions to the existing system, project or combined system 
other than those necessary to maintain it in good repair and working order 
as herein provided. Such rates shall be fixed and revised from time to time so 

47 



§ 59-398 Code of Laws of South Carolina § 59-401 

as to produce these amounts and the governing body shall covenant and agree 
in the ordinance authorizing the issuance of the bonds and on the face of each 
bond at all times to maintain such rates for services furnished by such system, 
project or combined system as shall be sufficient to provide for the foregoing. 
1942 Code §9263; 1933 (38) 411. 

§ 59-398. Rates not subject to regulations and permits not required. 

Rates charged for services furnished by any system, project or combined 
system purchased, constructed, improved, enlarged, extended or repaired 
under the provisions of this article shall not be subject to supervision or regu- 
lation by any State bureau, board, commission or other like instrumentality 
or agency of the State and it shall not be necessary for any borrower oper- 
ating under the provisions of this article to obtain any franchise or other 
permit from any State bureau, board, commission or other instrumentality 
of the State in order to construct, improve, enlarge, extend or repair any 
system, project or combined system named in this article. But the functions, 
powers and duties of the State Board of Health shall remain unaffected by this 
article. 

1942 Code §9270; 1933 (38) 411. 

§ 59-399. Payment for service by borrower. 

No free service shall be furnished by any such system, project or combined 
system to the municipality owning it or to any agency, instrumentality or 
person. The reasonable cost and value of any service rendered to any such 
borrower by any such system, project or combined system shall be charged 
against the borrower and shall be paid for monthly as the service accrues from 
the current funds or from the proceeds of taxes which the borrower, within 
constitutional limitations, is hereby authorized and required to levy in an 
amount sufficient for that purpose and such funds, when so paid, shall be ac- 
counted for in the same manner as other revenues of such system, project or 
combined system. 

1942 Code §9260; 1933 (38) 411. 

§ 59-400. Accounting basis of project. 

The ordinance authorizing the issuance of such bonds shall definitely deter- 
mine whether such system, project or combined system shall be operated upon 
a calendar, operating or fiscal year basis and the dates of the beginning and 
ending thereof. 

1942 Code §9266; 1933 (38) 411. 

§ 59-401. Custodian of gross revenues; funds are trust funds. 

The governing body of the borrower shall designate as custodian of the 
gross revenues from the operation of the system, project or combined system 
a bank, depository or trust company duly qualified and doing business within 
the State, which shall be satisfactory to the governing body of such borrower. 
The bank, depository or trust company shall signify its acceptance of such 
custodianship by a written instrument directed to the governing body of the 

48 



§59-402 Public Works and Certain Public Authorities §59-403 

borrower. All funds from time to time derived from the operation of such 
system, project or combined system or funds of tbe borrower supplemental 
to tbe operation anil maintenance fund, tbe depreciation fund or tbe contingent 
fund shall be deposited by such borrower with such bank, depository or trust 
company and be set apart by such bank, depository or trust company pursuant 
to written instructions from the borrower into the appropriate fund or funds 
designated in § 59-402. Each of the designated funds from time to time held 
by such bank, depository or trust company shall be impressed with a trust 
for the benefit of the persons entitled thereto. 
1942 Code §9265-1; 1933 (38) 411; 1936 (39) 1299. 

§ 59-402. Segregation of revenues to several funds. 

In the authorizing ordinance the governing body of the borrower shall set 
aside monthly (or oftener if deemed advisable) and shall pledge the gross 
revenues of the system, project or combined system into separate and special 
funds as follows : out of the gross revenues there shall be first set aside a sum 
sufficient to pay the principal of and the interest upon the bonds as and when 
they become due and payable. If the gross revenues of any calendar, oper- 
ating or fiscal year shall be insufficient to pay the principal of and interest 
on the bonds maturing in any such calendar, operating or fiscal year, an addi- 
tional amount sufficient to pay the principal of and interest on such bonds out- 
standing and unpaid shall be set aside out of the gross revenues of the next 
succeeding calendar, operating or fiscal year and applied to the payment of 
the principal of and interest on such outstanding and unpaid bonds. This 
fund shall be designated the "bond and interest redemption fund." Out of 
the remaining gross revenues there shall be next set aside a sum sufficient to 
provide for the payment of all expenses of administration and operation and 
such expenses for maintenance as may be necessary to preserve the system, 
project or combined system in good repair and working order. This fund 
shall be designated the "operation and maintenance fund." Out of the re- 
maining gross revenues there shall be next set aside a sum sufficient to build 
up a reserve for depreciation of the existing system or combined system. This 
fund shall be designated the "depreciation fund." Out of the remaining gross 
revenues there shall be next set aside a sum sufficient to build up a reserve 
for improvements, betterments and extensions to the existing system, project 
or combined system, other than those necessary to maintain it in good repair 
and working order as herein provided. This fund shall be designated the "con- 
tingent fund." Any surplus revenues thereafter remaining shall be disposed 
of by the governing body of the borrower as it may determine from time to 
time to be for the best interest of the borrower. 

1942 Code §9264; 1933 (38) 411. 

§ 59-403. Payment of expenses of operation or maintenance. 

Nothing in this article shall be construed to prohibit the borrower from ap- 
propriating and using any part of its available income or revenues derived 
from any source other than from tbe operation of such system, project or com- 
bined system in paying any immediate expenses of operation or maintenance 
[6 SC Code]— 4 49 



§ 59-404 Code of Laws of South Carolina § 59-408 

of any such system, project or combined system. But nothing in this article 
shall be construed to require the borrower to do so. 
1942 Code §9265; 1933 (38) 411. 

§ 59-404. Bonds payable only from bank and interest redemption fund. 

Bonds issued under the provisions of this article shall be payable solely 
from the revenues in the bond and interest redemption fund. 

1942 Code §9264; 1933 (38) 411. 

§ 59-405. Excess contributions to bond and interest redemption fund. 

In the segregation and separation of the gross revenues into the several 
funds in § 59-402 stated, the governing body may prescribe a reasonable ex- 
cess amount to be placed in the bond and interest redemption fund from time 
to time during the earlier years of maturities of such bonds so as thereby to 
produce and provide a cushion fund to meet any possible deficiencies therein 
in maturities of future years. If such excess amounts are thus provided 
provision may be made in the ordinance for the scaling down of such amounts 
in future years if the surplus so provided in the earlier years may then be 
found to have been accumulated and to be available. 

1942 Code §9264; 1933 (38) 411. 

§ 59-406. Disposition of surplus in operation and maintenance fund. 

If any surplus shall be accumulated in the operation and maintenance fund 
which shall be equal to the cost of operating and maintaining the system, proj- 
ect or combined system during the remainder of the calendar, operating or 
fiscal year, as provided by the authorizing ordinance, and the cost of operating 
and maintaining the system, project or combined system during the succeed- 
ing like calendar, operating or fiscal year, any such surplus may be transferred 
at any time by the governing body to the depreciation fund, the contingent 
fund or the bond and interest redemption fund. 

1942 Code §9267; 1933 (38) 411. 

§ 59-407. Disposition of surplus in depreciation fund. 

If any surplus shall be accumulated in the depreciation fund over and above 
that which the governing body shall find may be necessary therein during the 
then present calendar, operating or fiscal year and the next ensuing calendar, 
operating or fiscal year, any such excess may be transferred to the contingent 
fund or the bond and interest redemption fund. 

1942 Code §9268; 1933 (38) 411. 

§ 59-408. Disposition of surplus in contingent fund. 

If any surplus shall be accumulated in the contingent fund over and above 
that which the governing body shall find may be necessary for reasonable 
and proper improvements, betterments and extensions to the existing system, 
project or combined system during the current calendar, operating or fiscal 
year and the next ensuing calendar, operating or fiscal year, any such excess 
may be transferred to the bond and interest redemption fund or may be 

50 [6SCCode] 



§59-409 Public Works and Certain Public Authorities §59-412 

applied, in so far as possible, in the purchase or retirement of outstanding 
bonds issued under the provisions of this article and for that purpose the 
governing body may purchase bonds not due in the open market at not more 
than the fair market value thereof. When such bonds are purchased for in- 
vestment the income from such investment shall be carried into the contingent 
fund. 

1942 Code §9269; 1933 (38) 411. 

§ 59-409. Books and accounts ; annual report ; inspection. 

Any borrower issuing revenue bonds under the provisions of this article 
shall install and maintain proper books of record and account (separate en- 
tirely from other records and accounts of such borrower) in which full and 
correct entries shall be made of all dealings or transactions of or in relation 
to the properties, business and affairs of the system, project or combined 
system. The governing body of such borrower, not later than three months 
after the close of any calendar, operating or fiscal year, shall cause to be pre- 
pared a balance sheet and an income and surplus account, showing, respective- 
ly, in reasonable detail the financial condition of the system, project or com- 
bined system at the close of such preceding calendar, operating or fiscal year 
and the financial operations thereof during such year. Such balance sheets 
and income and surplus accounts shall at all reasonable times during usual 
business hours be open to examination and inspection by any taxpayer, user 
of the services furnished or holder of bonds issued under the provisions of this 
article or anyone acting for or on behalf of such taxpayer, user or bondholder. 

1942 Code §9271; 1933 (38) 411. 

§ 59-410. Limitation of obligation of municipality. 

No obligation shall be incurred by any municipality in any such construc- 
tion, acquisition, extension or improvement except such as is payable solely 
from funds provided under the authority of this article. 

1942 Code §9242; 1933 (38) 411; 1934 (38) 1543. 

§ 59-41 1. Issue of bonds without election or notice. 

This article shall be construed as authorizing the issuance of such bonds 
provided for herein without submitting the proposition for the approval of 
them to the voters of the borrower. When bonds are authorized under this 
article it shall not be necessary to make publication of any ordinance, resolu- 
tion, notice or proceeding relating thereto. But nothing in this article shall 
be construed to prohibit the governing body from making such publication 
as it may deem necessary in relation thereto. 

1942 Code §9274; 1933 (38) 411. 

§ 59-412. Effect of former Public Works Administration Act. 

All sections, provisions and clauses of this article which were repugnant 
to or inconsistent with the provisions of the former Public Works Administra- 
tion Act of the Congress of the United States are hereby declared void insofar 
as they were in conflict with the Public Works Administration Act, the in- 

51 



§ 59-413 Code of Laws of South Carolina § 59-422 

tention of this article being to enable the political subdivisions of this State 
to qualify for any right, privilege or immunity granted by any act of the 
Congress of the United States or any board, commission, agency or instru- 
mentality thereof. 

1942 Code §9244; 1933 (38) 411; 1934 (38) 1543. 

§ 59-413. No effect on existing contracts and liens. 

Nothing in this article shall be construed as authorizing any borrower to 
impair or commit a breach of the obligation of any valid lien or contract 
created or entered into by it, the intention hereof being to authorize the 
pledging, setting aside and segregation of gross revenues only when con- 
sistent with outstanding obligations of such borrower. 

1942 Code §9273; 1933 (38) 411. 

§ 59-414. Article creates alternate method. 

This article shall be construed as cumulative authority for the purposes 
named in § 59-365 and as to the manner and form of issuing revenue bonds 
for any such purpose and shall not be construed to repeal any existing laws 
with respect thereto, it being the purpose and intention of this article to 
create an additional and alternate method for the purposes herein named. 

1942 Code §9241; 1933 (38) 411; 1934 (38) 1543. 

§ 59-415. Article to be liberally construed. 

This article being necessary for and to secure the public health, safety, 
convenience and welfare of the counties, townships, cities and incorporated 
towns of the State shall be liberally construed to effect the purposes hereof. 

1942 Code § 9275; 1933 (3S) 411. 

Article 10. 
Unauthorised Use of Municipal Water System. 

§ 59-421. Opening fire hydrants. 

It shall be unlawful for any person not connected with the commissioners 
of public works of any municipality of this State, the fire department of any 
such municipality or the body charged with the duties of commissioners of 
public works in municipalities which have no such commissioners to interfere 
with or open for any purpose whatever any of the fire hydrants on the mains 
of the water works of such municipalties, except in case of fire, without first 
having obtained a proper permit so to do from the authorized representatives 
of such commissioners, fire department or other such body. 

1942 Code §1203; 1932 Code §1203; 1925 (34) 98. 

§ 59-422. Interference with appurtenances. 

It shall be unlawful for any person to interfer or tamper with any of the 
property or appurtenances belonging to a municipality or controlled by the 
commissioners of public works or other body charged with the duties of com- 
missioners of public works in municipalities which have no such commis- 

52 



§59-423 Public Works and Certain Public Authorities §59-425 

sioners in connection with the waterworks system or to turn on or off the sup- 
ply of water to any premises at and with the curb cock, without first having 
obtained the proper permit so to do from the authorized representatives of such 
municipality or the commissioners of public works or other such bod)-. 
1942 Code § 1203; 1932 Code § 1203; 1925 (34) 98. 

§ 59-423. Injury or obstructions to system or pollution of water. 

It shall be unlawful for any person to remove, obstruct, deface or injure, 
within or without the corporate limits of any municipality, any of the fire 
hydrants, public drinking fountains or valve covers or any pipe, ditch, drain 
or appurtenances of the waterworks of any municipality or to pollute the 
water supply of any municipality of this State, controlled by such municipal- 
ity or by the commissioners of public works of such municipality or other 
body charged with the duties of commissioners of public works in munic- 
ipalities which have no such commissioners. 

1942 Code §1203; 1932 Code §1203; 1925 (34) 98. 

§ 59-424. Unauthorized use of water. 

Any person who has a contract, agreement, license or permission, oral or 
written, with or from any municipality or the commissioners of public works 
thereof or other body charged with the duties of commissioners of public 
works in municipalities which have no such commissioners for the use of 
water belonging to or furnished by any such municipality, commissioners 
of public works or other such body, for certain specified purposes, who shall 
wilfully and intentionally withdraw or cause to be withdrawn water in any 
manner and appropriate it to his own use or to the use of any other person, 
for purposes other than those specified, shall be guilty of a misdemeanor and 
upon conviction thereof shall be punished as provided in § 59-427. Any such 
person to whom such water is furnished from or by means of a meter, who 
shall, wilfully and with intention to cheat and defraud any such municipality, 
commissioners or other such body, alter or interfere with such meter or by 
any contrivance whatsoever withdraw or take off water in any manner 
except through such meter, shall be guilty of a misdemeanor and be punished 
as provided in said section. 

1942 Code § 1203; 1932 Code § 1203; 1925 (34) 98. 

Violation is not larceny. — In order for the tion a misdemeanor; and the procurement 

installation and use of a contrivance for di- of water without paying therefor by the use 

verting water from the meter to be unlaw- of such a device is not larceny under the 

ful, such contrivance must be installed and law of this State. State v. Gregory, 191 S. 

used with intent to cheat and defraud, yet S. 212, 4 S. E. (2d) 1 (1939). 
this section merely denominates its viola- 

§ 59-425. Use of water without contract a misdemeanor. 

Any person who has no contract, agreement, license or permission with or 
from any municipality or the commissioners of public works thereof or other 
body charged with the duties of commissioners of public works in municipali- 
ties which have no such commissioners, for the use of water belonging to or 
furnished by such municipality, commissioners or other such body, who shall 

53 



§ 59-426 Code of Laws of South Carolina § 59-443 

willfully withdraw or cause to be withdrawn in any manner and appropriate 
such water from the water mains or pipes of such municipality, commissioners 
or other such body or any water mains or pipes connected therewith, for his 
own use or for the use of any other person, shall be guilty of a misdemeanor 
and, upon conviction thereof, shall be punished as provided in § 59-427. 
1942 Code § 1203; 1932 Code § 1203; 1925 (34) 98. 

§ 59-426. Tapping water main without permit. 

It shall not be lawful for any person to extend service pipes attached to the 
mains and water supply on any premises within or without a municipality 
without first obtaining permission therefor in writing from the municipality 
or the commissioners of public works or other body charged with the duties 
of commissioners of public works in municipalities which have no such com- 
missioners and before any workman or plumber shall perform any work con- 
nected with the extension of such service pipes written permission for such 
extension shall be obtained. 

1942 Code § 1203; 1932 Code § 1203; 1925 (34) 98. 

§59-427. Penalty. 

Any person violating any provision of this article shall be guilty of a mis- 
demeanor and upon conviction shall be punished by a fine not exceeding two 
hundred dollars or by imprisonment not exceeding sixty days, or by both 
such fine and imprisonment. 

1942 Code § 1203; 1932 Code § 1203; 1925 (34) 98. 

Article 11. 
Sale of Municipal Electric or Water Plant. 

§ 59-441. Election to consider sale of light or water plants. 

Should the city or town council of any city or town in this State which 
owns its electric light plant and water system, either or both, at any time 
receive an offer for such electric light plant or water system, the council may 
order a special election in such city or town for the purpose of determining 
whether or not such offer shall be accepted. 

1942 Code %7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

Cross references. — As to electricity gener- As to sale of electric power controlled by 
ally, see Title 24. As to regulation of elec- State, see §§ 24-201 to 24-206. 
trical utilities generally, see §§ 24-1 to 24- 
176. 

§ 59-442. Security from purchaser. 

Prior to the ordering of such election, such city or town council may take 
from the proposed purchaser such security as it may deem sufficient for the 
performance of the offer of purchase in the event of its acceptance. 

1942 Code §7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

§ 59-443. Notice of election. 

In the event such election be ordered, six weeks' notice thereof shall be 
given by publication in a newspaper of general circulation in such city or town 

54 



§ 59-444 Public Works and Certain Public Authorities § 59-450 

once each week for six weeks preceding the date of such election. Such notice 
shall contain in substance the terms of the offer for such property. 

1942 Code §7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

§ 59-444. Blank. 

§ 59-445. Persons entitled to vote and conduct of election. 

The city or town council shall conduct the election, appoint managers there- 
for and canvass and declare the result thereof in the manner provided by law 
in reference to general elections in such city or town. All qualified electors 
of such city or town shall be entitled to vote in the election. 

1942 Code §7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

§ 59-446. Sale if majority favors. 

In the event the result of the election is in favor of the acceptance of the 
offer so submitted to the people, the city or town council of such city or town 
shall accept such offer and complete the sale by the conveyance to the pur- 
chaser of the property purchased, executing and delivering all proper deeds 
of conveyance therefor. 

1942 Code §7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

§ 59-447. Two-thirds vote required in Gaffney. 

No sale of the waterworks or lighting system, either or both, of the city of 
Gaffney shall be made unless such sale is authorized by two-thirds of the 
qualified voters of the city in an election held for that purpose. 

1942 Code §7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

§ 59-448. Operating agreement with purchaser ; maximum rates. 

In connection with such sale, such city or town council may make and enter 
into an agreement with the purchaser for the operation of the property so 
purchased and the furnishing to the people of the city or town of electric cur- 
rent or water or both, as the case may be, and may fix maximum rates 
therefor during such period as may then be agreed upon. 

1942 Code §7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

§ 59-449. Grant of franchise. 

In connection with such sale such city or town council may grant to the 
purchaser an exclusive or non-exclusive franchise for furnishing electric 
current or water, or both, to such city or town and the inhabitants thereof. 
But no such exclusive franchise shall affect an)- existing contractual rights 
and no such exclusive franchise for furnishing water shall be for a period 
exceeding thirty years. 

1942 Code §7277; 1932 Code §7277; 1927 (35) 176; 1930 (36) 1388; 1932 (37) 1128. 

§ 59-450. Special provisions for Seneca Light and Water Plant. 

No disposal by lease, sale or otherwise of the properties and assets of the 
Seneca Light and Water Plant shall be made without the approval of the 

55 



§59-461 Code of Laws of South Carolina §59-466 

Seneca commission of public works and the mayor and council of Seneca in 
council assembled after the question of sale has been submitted to a vote of 
the qualified electors of the town at an election called and held by a petition 
of the majority of the freeholders of the town and approved by a majority of 
those voting at such election. 
1950 (46) 3374. 

Article 12. 
Extension of Water and Sewer Systems. 

§ 59-461. Extension and assessment therefor. 

Upon the written request of any property owner requesting the city or town 
to extend to him water and sewer service and agreeing to pay the cost thereof 
the city or town may provide such service and levy an assessment against the 
property of the owner so requesting such service for the costs thereof. 

1945 (44) 256; 1947 (45) 506. 

§ 59-462. Extension beyond city limits. 

Any city or town may extend its system to any property beyond the city 
limits provided that both the water and sewer systems are extended to such 
property. 

1945 (44) 256; 1947 (45) 506. 

§ 59-463. Ordinance to provide for payment of costs. 

Any incorporated city or town of this State may provide by ordinance for 
the payment of the costs of extending its water and sewer system to any 
property owner as herein provided. 

1945 (44) 256; 1947 (45) 506. 

§ 59-464. Entry of assessments. 

Such assessments shall be entered in a book kept by the city or town clerk, 
to be entitled "Water and Sewer Assessment Liens", stating the names of the 
owners, the location of the property, the amount of the assessment and the 
time or times of payment. 

1945 (44) 256; 1947 (45) 506. 

§ 59-465. Same ; when extensions beyond city limits. 

When such water and sewer system is extended to property beyond the 
city limits the assessments shall be entered in an assessment book in the office 
of the clerk of the court for the county in which such city is located which 
shall be furnished by the city. 

1945 (44) 256; 1947 (45) 506. 

§ 59-466. Lien of assessments. 

The assessments so laid shall constitute a lien upon the property so assessed 
which shall be superior to all other liens except the liens for county, State 
and city taxes and payment thereof may be enforced as the payment of city 

56 



§ 59-467 Public Works and Certain Public Authorities § 59-470 

or town taxes is enforced. Such lien shall continue from the date of entry on 
the "water and sewer assessment liens" book until the expiration of five years 
from the date when final payment is due and payable, unless sooner paid. 
1945 (44) 256; 1947 (45) 506. 

§ 59-467. Effect of default in payment of installment. 

Upon default in the payment of any installment or deferred portion of any 
assessment, at the time and in accordance with the terms and conditions fixed 
by ordinance, the total amount of such assessment then unpaid, including de- 
ferred installments or payments and interest, shall immediately become due 
and collectible, at the option of the city or town, and shall be collectible as 
city or town taxes are collected, with such penalties and costs as are provided 
for the payment of such taxes. 

1945 (44) 256; 1947 (45) 506. 

§ 59-468. Entry of satisfaction of assessments. 

It shall by ordinance be made the duty of the city or town clerk to make en- 
try of satisfaction on such Water and Sewer Assessment Liens Book as soon 
as full payment is made and the lien shall be thereby extinguished. 

1945 (44) 256; 1947 (45) 506. 

§ 59-469. Deposit and use of receipts. 

The amounts of money raised by such assessments shall constitute and be 
kept as a separate fund, to be used for the purpose for which it was raised. 

1945 (44) 256; 1947 (45) 506. 

§ 59-470. Issue certificates of indebtedness against assessments. 

The city or town council of any such city or town may issue certificates of 
indebtedness showing the amounts of money due to such city or town by 
property owners as deferred payments or installments upon such assessments 
and may sell any such certificates of indebtedness or borrow money by pledg- 
ing any of them as collateral security for the payment of such debt or debts 
and, in the event of either a sale or collateral pledge of such certificates, or 
any of them, may pledge the faith and credit of such city or town for the 
payment thereof and guarantee the payment thereof for and in the name of 
such city or town. In any such case it shall not be necessary for a separate 
certificate of indebtedness to be issued showing the amount due from each 
property owner, but such certificates may be issued in denominations of one 
hundred dollars, or any multiple thereof. Nor shall it be necessary for the 
maturities of such certificates of indebtedness to correspond exactly to the 
maturities of such deferred payments or installments of the assessments and 
such certificates may be issued having fixed dates of maturities, but, in the 
event of payment of the assessments before the maturity of the certificates, the 
amount of such assessments so paid shall be placed in a sinking fund and held 
solely for the payment of the certificates of indebtedness issued against them. 

1945 (44) 256; 1947 (45) 506. 

57 



§ 59-471 Code of Laws of South Carolina § 59-482 

§ 59-471. Assessment book and entry of satisfaction in Chester. 

In the city of Chester the book required to be kept by § 59-464 and the entries 
of satisfaction required to be made by § 59-468 shall be kept and made by the 
city clerk or city manager. 

1947 (45) 506. 

Article 13. 
Sewerage Systems Generally and Sewerage Commissions. 

§ 59-481. Establishment of municipal sewerage system. 

Any city or town in this State may incur bonded indebtedness and own and 
possess property to any amount within the discretion of the municipal au- 
thorities of such city or town for the purposes of purchase, establishment and 
maintenance of sewerage systems; provided, that the question of such pur- 
chase, establishment or indebtedness shall be submitted to an election and 
no such purchase, or establishment or indebtedness shall be made except upon 
the vote in favor thereof of a majority of the electors of such city or town who 
are qualified to vote on the bonded indebtedness of such city or town : and 
provided, further, that the question of incurring such indebtedness be submitted 
with favorable results to the freeholders of such municipalities by petition. 

1942 Code §7278; 1932 Code §7278; Civ. C. '22 §4429; 1918 (30) 801. 

No limitations exist on manner of submit- Purchase of plant and issuance of bonds 

ting questions. — Under this section bonds were properly submitted together. — In Mc- 

issued by a town, pursuant to an election Daniel v. Bristol, 160 S. C. 408, 158 S. E. 

submitting as a general proposition the 804, (1931), the court held that the city 

purpose of establishing and constructing council properly submitted to voters as one 

waterworks and sewerage system within question matter of purchase of waterworks 

corporate limits, were valid and binding plant and issuance of bonds therefor, 

obligations, there being no constitutional For additional related case, see Harby v. 

limitations relative to the manner in which Jennings, 112 S. C. 479, 101 S. E. 649 

questions are to be submitted. Waits v. (1919). 
Ninety-Six, 154 S. C. 350, 151 S. E. 576 
(1930). See S. C. Const., Art. 8, §5. 

§ 59-482. Sewerage commission ; when and how constituted ; term. 

Any municipal corporation in this State which is about to enlarge, extend 
or establish a system of sewerage therein may, by its mayor and aldermen, 
intendant and wardens or city or town council, elect five or seven of its citi- 
zens, who shall be freeholders therein, as a sewerage commission, which shall 
be known and designated as the sewerage commission of such municipal cor- 
poration ; provided, that not more than three persons so elected as members of 
said commission shall be members of the body electing such commission. The 
members of the sewerage commission shall continue as such for a term of two 
years and until their successors are elected or until the enlarging, extending 
or establishment of the system of sewerage is fully completed, as contemplated 
under the laws and ordinances providing therefor. 

1942 Code § 7295; 1932 Code § 7295; Civ. C. '22 §4444; Civ* C. '12 § 3021; 1902 (23) 1040. 

Right of commissioners of public works sion. — See State v. Young, 66 S. C. 115, 44 
to bonds, etc., as against sewerage commis- S. E. 586 (1903). 

58 



§ 59-483 Public Works and Certain Public Authorities § 59-488 

§ 59-483. Exception for Myrtle Beach. 

In the town of Myrtle Beach the town council may by resolution or ordinance 
confer upon the commissioners of public works full power and authority to 
control, manage, operate and maintain the sewer system of said town in addi- 
tion to the other duties, powers and authority devolved upon the commission- 
ers of public works. 

1944 (4.5") 1171, 1208. 

§ 59-484. Exception for Union. 

The supervision, control, maintenance, operation, upkeep and extension 
of the sewerage system of the city of Union is hereby vested in the commis- 
sioners of public works of said city and they may adopt such reasonable rules 
and regulations as may be necessary for the proper supervision, maintenance, 
upkeep and extension of said sewerage system. 

1942 Code §7675-55; 1939 (41) 407. 

§59-485. Oaths of members; officers; vacancies and removal from office. 

The members of the sewerage commission, before entering upon their 
duties, shall take the same oaths required of members of the body electing 
them. They shall organize by electing one of the members as chairman thereof 
and a secretary, who may be the same person as the clerk of the city or town 
council. 

Any vacancy occurring in the membership of the commission shall be filled 

by election as provided in § 59-482 and any member thereof may be removed 

for cause by any such city or town council. 

1942 Code §§7295, 7296; 1932 Code §§7295, 7296; Civ. C. '22 §§4444, 4445; Civ. C. '12 
§§ 3021, 3022; 1902 (23) 1040. 

§ 59-486. Duties of sewerage commission. 

Any such sewerage commission shall have the construction of the sewerage 
system in charge and, subject to the approval of the city or town council, shall 
advertise for bids for at least thirty days in two or more newspapers for the 
work to be done and for material to be used therein, with the right to reject 
any and all bids, and shall enter into contracts with the lowest responsible 
bidders thereon and secure competent persons, if deemed advisable, to super- 
intend the construction and counsel and advise in matters relating thereto. 

1942 Code § 7296; 1932 Code § 7296; Civ. C. '22 § 4445; Civ. C. '12 § 3022; 1902 (23) 1040. 

§ 59-487. Commission not to contract with member. 

No member of any such commission shall be permitted to enter into any 
contract with such commission for furnishing materials or for the construction 
of any of the work of such sewerage system. 

1942 Code § 7296; 1932 Code § 7296; Civ. C. '22 § 4445; Civ. C. '12 § 3022; 1902 (23) 1040. 

§ 59-488. Expenditures. 

No such sewerage commission shall expend more money in enlarging, ex- 
tending or establishing the system of sewerage than has been appropriated 

59 



§ 59-489 Code of Laws of South Carolina § 59-491 

therefor, according to law. All payments for material furnished and work 
performed shall be made by the treasurer of the city or town council on war- 
rants issued by the commission and approved by the city or town council. 

1942 Code § 7296; 1932 Code § 7296; Civ. C. '22 § 4445; Civ. C. '12 § 3022; 1902 (23) 1040. 

§ 59-489. Records of commission. 

A permanent record shall be made and kept by each sewerage commission of 
all its proceedings, contracts and other matters done and performed by it, 
including an accurate plan of the work done, showing the situation of the 
sewerage pipes, manholes, water flushes and all other things relating thereto 
that should be shown. And such records shall be open at all times to the in- 
spection of any citizen of such municipality and to the city or town council 
thereof and shall be turned over to such city or town council as a permanent 
record thereof, with all convenient speed, on the completion of the work. 

1942 Code § 7296; 1932 Code § 7296; Civ. C. '22 § 4445; Civ. C. '12 § 3022; 1902 (23) 1040. 

§ 59-490. Use of streets, highways and public buildings for sewerage purposes. 
Any municipal corporation in this State, for the purpose of enlarging, ex- 
tending or establishing a system of sewerage, may use any of the streets of 
such municipal corporation, and any of the public buildings, roads and high- 
ways of the county in which the municipality is located for the purpose of 
constructing, operating, repairing and protecting such system. But it shall 
restore all highways to as good a condition as they were in prior to such use 
without any unnecessary delay and with the least possible inconvenience to the 
public. 

1942 Code §7299; 1932 Code §7299; Civ. C. '22 §4447; Civ. C. '12 §3024; 1902 (23) 
1040; 1939 (41) 412. 

§ 59-491. Contracts as to systems of sewerage disposal. 

All municipalities in this State owning, controlling, leasing or planning to 
construct a system of sewage disposal with or without outfalls, rights of way, 
easements and appurtenances thereto, may, through proper officials, commis- 
sioners of public works, sewer commissions or any of them or like bodies, 
enter into contracts and agreements with persons or political subdivisions out- 
side the corporate limits of such municipalities, whether contiguous thereto 
or not, for the construction, maintenance, operation, improvement, leasing, 
controlling or furnishing the use, benefits and facilities thereof upon such 
terms and at such rates and charges as may be fixed by the contract or agree- 
ment between the parties when, in the judgment of the proper officials, com- 
missioners of public works, sewer commissions, or any of them or like bodies, 
as the case may be, it is for the best interest of the city, town or municipality 
so to do. But no such contract or agreement shall be for a period exceeding 
thirty years from the effective date thereof. 

Nothing herein contained shall be construed as abrogating, limiting or 
qualifying any contracts or agreements of the nature set forth herein which 

60 



§ 59-492 Public Works and Certain Public Authorities § 59-512 

may have heretofore been entered into and under which the parties thereto are 
operating. 
1948 (45) 1686. 

§ 59-492. Use of other revenues for sewerage in Union. 

The commissioners of public works of the city of Union, in order to carry 
mit the duties hereby imposed and in order to make such extensions to the 
sewerage system of the city as may be necessary, may use such surplus funds 
as they may deem necessary remaining in their possession from the operation 
of the waterworks and electric light system of the city, after full provision has 
been made for the requirements of all bond obligations for which the revenues 
of such water and electric light system have been pledged and after full pro- 
vision has been made for all other obligations arising from the operation of 
the water and electric light system and its proper maintenance. 

1942 Code §7675-55; 1939 (41) 407. 

§ 59-493. General ordinances, rules, regulations, etc. 

Any such municipal corporation may enact all necessary ordinances, rules 
and regulations consistent with law for the establishment, construction, main- 
tenance, operation, protection, use, control and repairing of its system of sewer- 
age, both within and without its corporate limits. 

1942 Code §7299; 1932 Code §7299; Civ. C. '22 §4447; Civ. C. '12 §3024; 1902 (23; 
1040; 1939 (41) 412. 

Article 14. 
Sewer Districts in Charleston County. 

§59-511. Connection charge. 

The governing body in any sewer district in Charleston County (hereinafter 
called "the commission"), may promulgate and impose a connection charge 
for connecting with the sewer in such district, which shall be in addition to 
the actual cost of connecting therewith and shall be not more than one hun- 
dred dollars. The amount of the charge shall be fixed by the commission and 
written notice thereof by registered mail shall be given by it to each property 
owner. 

1942 Code §4077-5; 1940 (41) 1916; 1941 (42) 260. 

§59-512. Payment of such charge. 

Such connection charge may, at the property owner's election, made by giv- 
ing to the commission written notice of such election within thirty days of 
the receipt of the notice by registered mail herein required, be paid in equal 
annual installments, under such conditions and provisions as shall by the 
commission be prescribed and determined except that the period shall not 
exceed fifteen years and the unpaid installments shall bear interest at the rate 
of six per cent per annum. 

1942 Code § 4077-5; 1940 (41) 1916; 1941 (42) 260. 

61 



§ 59-513 Code of Laws of South Carolina § 59-517 

§ 59-513. Lien and collection of charge. 

The connection charge promulgated and imposed hereunder shall be and 
constitute a lien upon the property connected to the sewer during and for 
three years after the period over which the installments are payable, and 
shall be next to State, county, school and district taxes. Such connection 
charge shall be collected by the commission, unless it, or any portion thereof, 
shall be assigned to Charleston County under the provisions of this article, in 
which event it shall be collected by the county treasurer. The commission or 
the county treasurer, as the case may be, may enforce the lien created herein 
by an action to foreclose it in any court of competent jurisdiction and shall have 
all the rights and remedies for the collection of such charge and the enforce- 
ment of such lien as are given by law to owners of mortgages on real estate. 
In the event that any property owner shall elect to pay in annual installments 
the connection charge imposed hereunder, such installments shall be collected 
in the same manner and by the same procedure, including execution and sale 
thereunder, and with the addition of the same costs and penalties as provided 
by law in the case of State, county and school taxes. 

1942 Code §4077-5; 1940 (41) 1916; 1941 (42) 260. 

§ 59-514. Record of charges. 

The commission or the county treasurer, as the case may be, shall keep a 
record of the connection charges in each district and the unpaid balances re- 
maining at all times. Such record shall be open to public inspection during 
business hours and shall be notice to the public of the unpaid connection 
charges. 

1942 Code §4077-5; 1940 (41) 1916; 1941 (42) 260. 

§ 59-515. Loans to districts authorized. 

The governing body of Charleston County shall make loans to such sewer 
districts in Charleston County as shall qualify therefor under the provisions of 
this article, not exceeding one and one half times the total of connection 
charges actually promulgated and imposed hereunder and to be assigned to 
the county as herein provided and in no case exceeding ten thousand dollars. 

1942 Code §4077-5; 1940 (41) 1916; 1941 (42) 260; 1944 (43) 1210. 

§ 59-516. Application for loan. 

The commission of any sewer district in Charleston County desiring to obtain 
from the county a loan under the provisions of this article shall make written 
request therefor to the governing body of the county setting forth therein the 
total amount of connection charges actually promulgated and imposed in the 
district by the commission under the provisions of this article. 

1944 (43) 1210. 

§ 59-517. Assignment to county of charges due. 

The commission may, with the approval of the governing body of Charleston 
County, assign to the county all connection charges due its district, together 

62 



§59-518 Public Works and Certain Public Authorities §59-521 

with the interest due and to become due thereon, to secure and provide for the 
repayment of any loan to the district under the provisions of this article. 
1942 Code §4077-5; 1940 (41) 1916; 1941 (42) 260. 

§ 59-518. Making of loan. 

Should the governing body of the county determine that any such district 
has qualified under this article for a loan, it shall in writing direct the county 
treasurer to place to the credit of such district such amount as shall be stated 
by the governing body in such written direction, such direction shall be given 
immediately after the commission of the district shall have delivered to the 
county treasurer the assignment to the county of the unpaid connection 
charges duly imposed and promulgated in the district. 

1944 (43) 1210. 

§ 59-519. Use of funds borrowed ; publication of expenditures. 

The commission of any such sewer district procuring and receiving a loan 
hereunder shall use it only for the purpose of furnishing the sponsor's share 
of a federal instrumentality or agency project for the construction or erection 
of a sewer in such district and shall monthly publish in a newspaper of general 
circulation in Charleston County an itemized statement showing the expendi- 
tures made in the preceding month from such fund. 

1942 Code §4077-5; 1940 (41) 1916; 1941 (42) 260. 

§ 59-520. Notice to property owners of assignment. 

When any connection charges shall have been assigned to said county here- 
under the commission and the county treasurer shall immediately give joint 
written notice by registered mail to each property owner in the district 
owing any connection charge, or portion thereof, of the assignment of such 
charge or portion to the count) - , and such charge or portion shall thereafter be 
due and payable only to the county treasurer. 

1944 (43) 1210. 

§ 59-521. Collection and disposition of charges after assignment. 

All connection charges becoming due to the district after any such assign- 
ment, whether or not included therein, shall be due and payable only to the 
county treasurer of the count}- so long as any part of such loan, and the 
interest thereon, shall remain unpaid, and such payments shall be placed 
by the count)- treasurer in the general funds of the county and, if not as- 
signed, shall nevertheless be credited by the county treasurer on such loan and 
interest as if they were included in such assignment. Any amount collected on 
connection charges in the district after the principal and interest of such loan 
shall have been paid in full to the county shall be placed by the county treas- 
urer to the credit of the district. 

1942 Code §4077-5; 1940 (41) 1916; 1941 (42) 260; 1944 (43) 1210. 



63 



§ 59-531 Code of Laws of South Carolina § 59-533 

Article 15. 
Wafer, Lights and Seiverage Beyond City Limits. 

§ 59-531. When such utilities may be furnished. 

Any city or town in this State owning a water or light plant may, through 
the proper officials of such city or town, enter into a contract with any person 
without the corporate limits of such city or town but contiguous thereto to 
furnish such person electric current or water from such water or light plant of 
such city or town and may furnish such water or light upon such terms, rates 
and charges as may be fixed by the contract or agreement between the parties 
in this behalf, either for lighting or for manufacturing purposes, when in the 
judgment of the city or town council it is for the best interest of the municipal- 
ity so to do. No such contract shall be for a longer period than two years but 
any such contract may be renewed from time to time for a like period. 

1942 Code §7300; 1932 Code §7300; Civ. C. '22 §4448; Civ. C. '12 §3025; 1907 (25) 
625; 1904 (24) 403; 1934 (38) 1206; 1936 (39) 1583; 1948 (45) 1842. 

Furnishing utilities outside limits is gov- And city is not liable for damages to 
ernmental function. — Furnishing of water property contiguous to city from fire caused 
and electricity for use without corporate by lightning which came over city's de- 
limits of municipality is "governmental fective wires transmitting electricity. Even 
function" of municipality. Loper v. Easley, if city contracted to insure against fire, such 
172 S. C. 11, 172 S. E. 705 (1934). contract is ultra vires. Looper v. Easley, 

No duties to nonresidents are imposed. 172 S. C. 11, 172 S. C. 705 (1934). 

— This section and other related sections For additional related case, as to allega- 

do not impose on municipality duties of tions in proceeding for injunction to pre- 

public service corporations as to nonresi- vent violation of section, see Paris Mt. 

dents. Childs v. Columbia, 87 S. C. 566, Water Co. v. Greenville, 110 S. C. 36, 96 

70 S. E. 296 (1911). S. E. 545 (1918). 

§ 59-532. Same; cities over 70,000, 1940 census. 

The limitation of two years imposed by § 59-531 shall not apply to cities 
having a population of over seventy thousand according to the 1940 United 
States census and such cities may enter into a contract as set forth in said 
section with persons, other cities, towns, public service commissions or political 
subdivisions without the corporate limits of the city, whether contiguous to 
the corporate limits or not, either for lighting or manufacturing or any other 
purposes, for any period or periods not exceeding fifty years and such con- 
tracts may include options for extending the existence thereof beyond the date 
of their expiration for any additional period or periods, not exceeding fifty 
years, and for similar extensions beyond the date of any such extended period 
or periods. 

1942 Code §7300; 1932 Code §7300; Civ. C. '22 §4448; Civ. C. '12 §3025; 1907 (25) 
625; 1904 (24) 403; 1934 (38) 1206; 1936 (39) 1583; 1948 (45) 1842; 1950 (46) 2261. 

§ 59-533. Same ; special provision for cities of 50,000 to 60,000, 1950 census. 

The limitations imposed by § 59-531 shall not apply to cities having a popu- 
lation of over fifty thousand and not more than sixty thousand as shown by 
United States Government census of 1950. Such cities may contract as set 
forth in said section with persons or other cities or towns, public service com- 
missions or other political subdivisions without the corporate limits of the city, 

64 



§59-534 Public Works and Certain Public Authorities §59-536 

whether contiguous to the corporate limits or not, and may contract for a 

period not exceeding twenty-five years. 

1942 Code §7300; 1932 Code §7300; Civ. C. '22 §4448; Civ. C. "12 §3025; 1907 (25) 
625; 1904 (24) 403; 1934 (38) 1206; 1936 (39) 1583; 1948 (45) 1842; 1951 (47) 143. 

§ 59-534. Same ; special provisions for Winnsboro. 

The town of Winnsboro may enter into a contract to furnish water to per- 
sons contiguous and adjacent to the Winnsboro Mill Village. 

1942 Code §7300; 1932 Code §7300; Civ. C. '22 §4448; Civ. C. '12 §3025; 1907 (25) 
625; 1904 (24) 403; 1934 (38) 1206; 1936 (39) 1583; 1948 (45) 1842. 

§ 59-535. Same; authorized term in Eau Claire. 

In the town of Eau Claire, in Richland County, the town council may con- 
tract for the sale of water for a period beyond the term of office of the town 
council, not to exceed ten years. 

1942 Code §7300; 1932 Code §7300; Civ. C. '22 §4448; Civ. C. '12 §3025; 1907 (25) 
625; 1904 (24) 403; 1934 (38) 1206; 1936 (39) 1583. 

§ 59-535.1. Same; special provisions for McColl. 

The town of McColl in Marlboro County may through the officials of said 
town enter into a contract with any person to furnish water or sewerage 
disposal facilities, one or both, without the corporate limits of said town but 
contiguous thereto, upon such terms, rates and charges as may be fixed by 
contract, for domestic or industrial purposes, or both, when in the judgment 
of such officials it is for the best interest of the municipality so to do. No 
such contract shall run for a longer period than forty years but it may be 
renewed from time to time in the discretion of the officials of said town. 

1951 (47) 203. 

§ 59-536. Furnishing water, light or sewerage disposal beyond city limits in 
Anderson, McCormick and York Counties. 

All cities and towns in Anderson, McCormick and York Counties owning 
water plants, light plants or sewage disposal systems, or any one or more of 
them, may, through the proper officials of the city or town, enter into contract 
with persons without the corporate limits to furnish such persons electric cur- 
rent, water or sewage disposal facilities, or any one or more of them, and, in 
Anderson County, in connection therewith, such street facilities as may be 
required, upon such terms, rates and charges as may be fixed by the contract 
or agreement between the parties to this effect, either for domestic or industrial 
purposes, or both, when in the judgment of the city or town council it is for the 
best interest of the municipality so to do. No such contract shall be for a 
longer period than fifty years but any such contract may be renewed from time 
to time for periods not exceeding fifty years. 

1948 (45) 1693, 1828; 1951 (47) 2. 



[6 SC Code ]—5 65 



§ 59-541 Code of Laws of South Carolina § 59-546 

Article 16. 
Ice Plants. 

§ 59-541. Acquisition and operation. 

The municipal authorities of any incorporated city or town in this State 
may acquire, by construction or purchase, and operate manufactories or 
plants for making ice and may furnish ice at wholesale or retail for reasonable 
compensation. But no such purchase or construction shall be made except 
upon a majority vote of the electors in such cities or towns who are qualified 
to vote on a proposed increase of the bonded indebtedness of any such city or 
town. 

1942 Code § 7272; 1932 Code § 7272; Civ. C. '22 § 4426; 1920 (31) 1040. 

§ 59-542. Blank. 
§59-543. Blank. 

§ 59-544. Operation of plant ; bond ; removal. 

The mayor and council of any city or the mayor or intendant and wardens or 
council of any town acquiring an ice plant under the provisions of this article 
may appoint such suitable and competent person or persons as may be nec- 
essary to operate such ice plant, at salaries to be fixed by such municipal 
authorities, and the person or persons so appointed may be required to give 
bond for the faithful performance of their duties in a sum to be fixed by such 
municipal authorities. Such person or persons may be removed at the will 
and pleasure of such municipal authorities. 

1942 Code §7274; 1932 Code §7274; Civ. C. '22 §4427; 1920 (31) 1040. 

§ 59-545. Selling price of ice. 

The price at which the product of any such ice plant as may be established 
hereunder shall be sold may be fixed from time to time by the municipal 
authorities of any such city or town and shall be sufficient to reimburse such 
city or town for the expenses and cost of manufacture thereof, together with 
any interest for which such city or town may be liable upon any bonds issued 
for the purpose of acquiring such ice plant. 

1942 Code § 7275; 1932 Code § 7275; Civ. C. '22 § 4428: 1920 (31) 1040. 

§ 59-546. Special election to authorize sale of ice plant. 

Should the city council of any city in this State which owns its ice plant or 
any board which controls any such plant at any time receive an offer for such 
plant, the city council or board may order a special election in the city for the 
purpose of determining whether or not such offer shall be accepted. 

1942 Code §7276; 1932 Code §7276; 1925 (34) 155; 1927 (35) 176; 1930 (36) 1388. 

Section was held constitutional in Mc- 
Kiever v. Sumter, 137 S. C. 266, 135 S. E. 
CO (1926). 

66 [6SCCode] 



§59-547 Public Works and Certain Public Authorities §59-561 

§ 59-547. Security required of proposed purchaser. 

Prior to the ordering of such election the city council or hoard controlling 
the plant may take from the proposed purchaser such security as it may d 
sufficient for the performance of the offer of purchase in the event of its ac- 
ceptance. 

1942 Code §7276; 1932 Code §7276; 1925 (34) 155; 1927 (35) 176; 1930 (36) 1388. 

§ 59-548. Notice of election. 

In the event such election be ordered four weeks' notice thereof shall he 
given by publication in a newspaper of general circulation in such city once 
in each week for four weeks preceding the date of such election. Such notice 
shall contain in substance the terms of the offer for such property. 

1942 Code §7276; 1932 Code §7276; 1925 (34) 155; 1927 (35) 176; 1930 (36) 1388. 

§59-549. Blank. 
§59-550. Blank. 

§ 59-551. Sale if election favorable; contract for operation and maximum rates. 

In the event the result of the election is in favor of the acceptance of the offer 
so submitted to the people, the city council or board shall accept such offer, 
complete the sale by the conveyance to the purchaser of the property purchased 
and execute and deliver proper deeds of conveyance therefor. In connection 
with such sale, such city council or board may make and enter into an agree- 
ment with the purchaser for the operation of the property so purchased and the 
furnishing to the people of ice and may fix maximum rates therefor during such 
period as may then be agreed upon. 

1942 Code §7276; 1932 Code §7276; 1925 (34) 155; 1927 (35) 176; 1930 (36) 1388. 

Article 17. 

Water Front Improvements. 

§ 59-561. Cities of fifty thousand or more may condemn lands on water front. 
Whenever any city of this State having a population of fifty thousand - in- 
habitants or more and located upon a navigable stream, whether tidal or non- 
tidal, shall desire to extend, improve or protect its water front for public 
purposes, it may acquire all private property, whether within or without 
such city or partly within and partly without such city, needed for such exten- 
sion, improvement or protection in the same manner, as to procedure, as is 
provided by law for condemnation of rights of way by railroad companies, 
upon the payment of just compensation therefor as determined by such pro- 
cedure. The right hereby conferred on any such city shall include the right 
to condemn in the manner aforesaid the title or possession of any and all lands, 
water or riparian rights, wharves, docks, warehouses, buildings, rights of way 
or any other property, including any property which may already have been 
condemned, when such property is so taken for the purpose of establishing, 
improving, developing, maintaining or operating the port and terminal utilities 

67 



§ 59-562 Code of Laws of South Carolina § 59-564 

of such city for public purpose. Title thus acquired shall vest absolutely in 

such city. No lands so condemned shall be sold to private owners by such 

city. 

1942 Code §7554; 1932 Code §7569; Civ. C. '22 §4752; Civ. C. '12 §3094; 1909 (26) 
170; 1920 (31) 904. 

§ 59-562. Filling up certain lowlands in such cases. 

Whenever such extension, improvement or protection shall make necessary 
the filling up of lowlands, owned by private persons, to a level established by 
the city and such filling up is proposed to be accomplished by excavation from 
the bed of a stream bordering the water front so to be extended, improved or 
protected under a general plan established by the city, such lowlands may be 
filled up by the city at the expense of such private owners and the costs thereof 
shall be a lien upon the lands so filled up. The cost to each private owner 
shall be determined by the proportion which the cubic contents of the filling in 
each lot or parcel of land, separately owned, shall bear to the cubic contents of 
the whole area filled. If the municipality and the owner cannot agree as to the 
cost of the filling aforesaid to be borne by such private owner, then it shall be 
determined by a proceeding in the nature of an action against such property, 
to be instituted by the municipality in the court of common pleas for the 
county in which such municipality is situated, to recover the amount claimed 
to be due and the reasonable costs to be paid by such lot owner shall be deter- 
mined by the jury as in the case of similar actions. 

1942 Code § 7555; 1932 Code § 7570; Civ. C. '22 § 4753; Civ. C. *12 § 3095; 1909 (26) 170. 

§ 59-563. How such lands shall be filled. 

The municipality shall first notify each private owner interested of the plan 
proposed and of the level up to which such lots are to be filled and of the 
general plan proposed and such private owners may, if they see fit, arrange to 
fill up their lands at their own expense, such filling up to be done either prior 
to or contemporaneously with the filling done by the city, and to be in accord 
with the general plan adopted. And the owner of any such land shall be en- 
titled to use the mud or soil in the bed of the river in front of such land for 
the purpose of filling up his land, in preference to any other, to the extent 
necessary to fill such lands. 

1942 Code §7556; 1932 Code §7571; Civ. C. '22 §4754; Civ. C. '12 §3096; 1909 (26) 170. 

§ 59-564. In case of disagreement, city shall condemn. 

In the event that any lot owner objects to the cost of filling of his lot, such 
owner may require the municipality to purchase such lot at a price agreed 
upon between the municipality and the owner and, in case of failure to agree 
upon the price, the municipality shall proceed to condemn such lot. And upon 
paying to the owner the price that may be fixed therefor, as herein provided, 
the title thereof shall vest in the municipality, which shall proceed to fill such 
lot and may sell it to reimburse itself for all expenses and charges. 

1942 Code § 7557; 1932 Code § 7572; Civ. C. '22 § 4755; Civ. C. '12 § 3097; 1909 (26) 170. 

Cited in Beattie v. City Council, 113 S. C. 
541, 102 S. E. 751 (1920). 

68 



§ 59-565 Public Works and Certain Public AUTHORITIES § 59-573 

§ 59-565. Condemnation proceedings. 

For the purpose of such condemnation the municipality shall file, in the 
court of common pleas for the county in which the municipality is located, a 
petition setting forth the necessity of filling such lot and that the owner has 
refused or failed to fill it upon being notified and that the owner objects to the 
estimated cost of such filling. A copy of such petition shall be served upon 
the owner of such lot as summons are served in cases at law. The judge of such 
court of common pleas shall thereupon cause a jury to proceed to fix the value 
of the lot to be paid by the municipality. 

1942 Code § 7557; 1932 Code § 7572; Civ. C. '22 § 4755; Civ. C. '12 § 3097; 1909 (26) 170. 

Article 18. 
Local Rock Hill Provisions. 

§ 59-571. Water system in Rock Hill. 

The mayor and council of the city of Rock Hill may construct, operate, man- 
age, control and dispose of the water system of said city and any additions 
thereto and may lease or convey it or any part thereof. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 
(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 
716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 
1928 (35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 
(37) 1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-572. Rock Hill sewer system. 

The mayor and council of the city of Rock Hill may provide for the disposi- 
tion of sewerage, waste products and effluent through the sewer system of said 
city and may contract and be contracted with in connection with the extension, 
operation and management of the sewer system of said city and with respect to 
the liability of the city therefor. 

1942 Code §7281; 1932 Code §7281; Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 

§2009; 1896 (22) 83; 1899 (23) 50; 1900 (23) 383; 1904 (24) 403; 1907 (25) 625; 1913 

(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 

716, 986; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 

1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 

1928 (35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 
(37) 1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 

§ 59-573. Election prerequisite to lease or conveyance of Rock Hill water or 

electric plant. 

Before any part of the waterworks system or electric light plant of the city 

of Rock Hill shall be leased, conveyed or otherwise disposed of the question 

of such lease, conveyance or disposal shall first be submitted to the vote of the 

qualified electors of said city at an election called and held pursuant to a 

petition of a majority of the freeholders of said city and approved by a majority 

of those voting at such election. 

1942 Code §7281; 1932 Code §7281: Civ. C. '22 §4431; Civ. C. '12 §3016; Civ. C. '02 
§2009; 1896 (22) 83; 1899 (23) 50; 1900 (2.5) 383; 1904 t,24) 403; 1907 (25) 625; 1913 

69 



§ 59-601 Code of Laws ok South Carolina § 59-602 

(28) 48; 1915 (29) 61; 1916 (29) 826, 946; 1917 (30) 60; 1918 (30) 715, 770; 1920 (31) 
716, 9S6; 1921 (32) 39, 196, 248; 1922 (32) 781, 789, 794, 834, 986; 1923 (33) 158, 162; 
1924 (33) 1062; 1925 (34) 7, 246, 265; 1926 (34) 918, 977; 1927 (35) 119, 171, 210; 
1928 (35) 1143; 1929 (36) 40, 45, 49; 1930 (36) 1248, 1403; 1931 (37) 126, 196, 302; 1932 
(37) 1408; 1933 (38) 466; 1934 (38) 1473; 1936 (39) 1480; 1940 (41) 1815. 



CHAPTER 4. 

Districts for Certain Public Works. 

Sec. Sec. 

59-601. Authority to establish. 59-613. Hearing prior to such establish- 

59-602. Petition for formation of district. ment. 

59-603. Call of election. 59-614. Schedule to be kept on file. 

59-604. Qualifications of electors. 59-615. Lien for rates; suits therefor. 

59-605. Place, managers and notice of elec- 59-616. Issue of bonds for construction or 

tion and declaration of result. acquisition. 

59-606. Questions submitted; election of 59-617. Terms and amount of bonds. _ 

commissioners. 59-618. Election prerequisite to bond issue. 

59-607. Organization of commission; va- 59 " 619 - Issue / nd sale of bonds; use of pro- 
• ceeds. 

csncics —— «. 

m s„ n ■.,• , 59-620. Signature of bonds. 

59-608. Minutes and secretary; compensa- 59.621. Bonds tax free. 

tion - 59-622. Government loans. 

59-609. General powers and duties of com- 59-623. Budget of district. 

missioners. 59-624. Levy, collection and disbursement of 

59-610. Plat of district. taxes. 

59-611. Power of condemnation. 59-625. Construction of chapter; no effect 

59-612. Establishment of rates, etc. on State Board of Health. 

§ 59-601. Authority to establish. 

In order to protect the public health, electric lighting districts, water sup- 
ply districts, fire protection districts and sewer districts may be established 
as herein provided for the purpose of supplying lights and/or water and/or 
providing fire protection, a sewerage collection system and/or a sewerage 
treatment plant to a portion of any county in this State which is not included 
in any incorporated city or town. 

1942 Code §8555-131; 1934 (38) 1292. 

§ 59-602. Petition for formation of district. 

Before any such district is formed there shall be filed with the clerk of the 
court of the county in which such district is proposed to be located a written 
petition signed by a majority of the resident landowners in the proposed dis- 
trict or by the owners of more than half the land and acreage which will be 
affected by or assessed for the expense of the proposed improvements, as shown 
by the tax assessment rolls. The petition shall be accompanied by a plat show- 
ing the limits of the proposed district. When such proposed district is sit- 
uated in two or more counties such petition shall be filed with the clerk of the 
court of each county wherein the district is to be located. 

1942 Code §8555-132; 1934 (38) 1292. 

70 



§59-603 Public Works and Certain Public Authorities §59-603 

§ 59-603. Call of election. 

When the petition is approved by the clerk of the court in which the pro- 
posed district is located, the clerk of the court shall call an election of the 
qualified voters of the district to vote upon the establishment of the district 
and of the electric light, water supply, fire protection and/or sewerage plant. 

1942 Code § 8555-132; 1934 (38) 1292. 

§ 59-604. Qualifications of electors. 

At such election only such electors as return real and personal property for 
taxation within the district and who exhibit their tax receipts and registration 
certificates as required in the general election shall be allowed to vote. 

1942 Code §8555-133; 1934 (38) 1292. 

§ 59-605. Place, managers and notice of election and declaration of result. 

The clerk of the court shall select some place within the proposed district 
for the holding of such election and shall appoint the managers thereof and 
declare the result. He shall give notice of the time and place thereof for at 
least two weeks in some newspaper published within the county and by 
posting notice thereof in at least three public places within the proposed dis- 
trict for such length of time unless there be no newspaper published within 
the county, in which event the posting of the notices shall suffice. 

1942 Code §8555-133; 1934 (38) 1292. 

§ 59-606. Questions submitted; election of commissioners. 

At such election the qualified voters shall vote "Yes" or "No" on the estab- 
lishment of such electric light, water supply, fire protection and/or sewerage 
district and of the electric light, water supply, fire protection and/or sewerage 
plant and at the same election they shall vote on the election of three com- 
missioners of the district who shall hold office for a period of six years and 
until their successors are elected and qualified, the members of the first com- 
mission, however, to have terms of office of two, four and six years. There- 
after a commissioner shall be elected at each State biennial election. 

1942 Code §8555-133; 1934 (38) 1292. 

§ 59-607. Organization of commission ; vacancies. 

As soon as practicable after the election the commissioners shall meet and 
organize as the board of electric light, water supply, fire and/or sewerage 
commissioners, as the case may be, for such district. The)' shall draw by lot 
the commissioners who shall hold the two, four and six year terms respective- 
ly. At the organization meeting they shall elect one of their number as chair- 
man. In the event of any vacancy on the commission the remaining members 
of the commission shall elect a commissioner to fill the unexpired term. 

1942 Code §8555-133; 1934 (38) 1292. 

§ 59-608. Minutes and secretary; compensation. 

The commissioners shall keep a record of their deliberations and for this 
purpose shall appoint a secretary who shall receive such remuneration as the 

71 



§ 59-609 Code of Laws of South Carolina § 59-613 

commissioners may determine. The commissioners shall serve without emolu- 
ment. 

1942 Code §8555-133; 1934 (38) 1292. 

§ 59-609. General powers and duties of commissioners. 

The boards of commissioners of such districts shall be bodies politic and 
shall exercise and enjoy all the rights and privileges of such. They may pur- 
chase and build or contract for building such electric light, water supply, fire 
protection and sewerage systems, may lease, own, hold and acquire all nec- 
essary equipment and property for such purpose and operate it and may 
contract with existing light and water companies and municipalities for light, 
water and fire protection or contract and connect with existing sewerage sys- 
tems of municipalities or other districts. They may supply and furnish lights 
and/or water and/or provide for fire protection and/or sewerage disposal to 
citizens of such districts and may require an exact payment of such rates, tolls, 
rentals and charges as they may establish for the use of lights, water, fire pro- 
tection and the sewerage plant. 

1942 Code §8555-134; 1934 (38) 1292. 

§ 59-610. Plat of district. 

The commission shall cause a copy of the plat showing the limits of the pro- 
posed district to be filed in the office of the auditor of the county in which the 
district is located. 

1942 Code §8555-133; 1934 (38) 1292. 

§ 59-611. Power of condemnation. 

Such districts being created and established for the purpose of providing 
better sanitary conditions for the people thereof, the boards of commissioners 
of such districts shall have power of condemnation for such purpose in the 
same manner and way as provided for condemnation by railroad corporations 
in article 8 of chapter 10 of Title 58. 

1942 Code §8555-134; 1934 (38) 1292. 

§ 59-612. Establishment of rates, etc. 

The board of commissioners of any such electric light, water supply, fire 
protection and/or sewerage district shall establish and maintain just and 
equitable rates, rentals or charges for the use of and the service rendered by 
such works, to be paid by the owner of each and every lot, parcel of real estate 
or building that is connected with and uses such works by or through any part 
of the electric light system, water supply system, fire protection system and/or 
sewerage system or that in any way is served by such works and may change 
or adjust such rates or charges from time to time. 

1942 Code § 8555-137; 1934 (38) 1292. 

§ 59-613. Hearing prior to such establishment. 

No such rates or charges shall be established until after a public hearing at 
which all the users of the works and the owners of property served or to be 

72 



§ 59-614 Public Works and Certain Public Authorities § 59-618 

served thereby shall have an opportunity to be heard concerning the pro- 
posed rates. Notice of such hearing, setting forth the proposed schedule of 
such rates, shall be given by one publication in a newspaper published in the 
county wherein the district is located at least ten days before the date fixed in 
such notice for the hearing. After such hearing the rate shall be passed upon 
by the board of commissioners and put into effect. 
1942 Code § 8555-137; 1934 (38) 1292. 

§59-614. Schedule to be kept on file. 

A copy of the schedule of such rates so established shall be kept on file in 
the office of the board of commissioners. 

1942 Code § 8555-137; 1934 (38) 1292. 

§ 59-615. Lien for rates ; suits therefor. 

All such rates or charges if not paid when due shall constitute a lien upon 
the premises served by such works. If any service rate or charge so estab- 
lished shall not be paid within thirty days after it is due, the amount thereof, 
together with a penalty of ten per cent and a reasonable attorney's fee, may 
be recovered by the board in a civil action in the name of the district and in 
connection with such action such lien may be foreclosed against such lot, 
parcel of land or building, in accordance with the laws relating thereto. 

1942 Code § 8555-137; 1934 (38) 1292. 

§ 59-616. Issue of bonds for construction or acquisition. 

To meet the costs of construction or acquisition of the lighting system, 
waterworks system, fire protection system and/or sewerage system, the com- 
missioners of any district may issue and sell serial coupon bonds for and 
in behalf of the township within which the district is located. 

1942 Code §8555-135; 1934 (38) 1292. 

§59-617. Terms and amount of bonds. 

Such bonds shall be issued serially and the last of them shall mature not 
more than twenty years from the date of issue, to bear a rate of interest 
not to exceed six per cent per annum payable semiannually at some place in 
the State or the office of some banking or trust company in the city of New 
York to be selected by the commissioners. The amount of the bonds to be 
issued shall be determined by the commissioners of the districts. 

1942 Code §8555-135; 1934 (38) 1292. 

§ 59-618. Election prerequisite to bond issue. 

Before any such bonds shall be issued the question of issuing them shall be 
first submitted to the qualified voters of the electric light, water supply, fire 
protection and/or sewerage district at an election to determine whether such 
bonds shall be issued or not, to be held upon the written petition or request 
of at least one third of the resident electors and a like proportion of the 
freeholders of the age of twenty-one years. Upon the receipt of such petition, 
the board of commissioners of the electric light, water supply, fire protection 

73 



§ 59-619 Code of Laws of South Carolina § 59-622 

and/or sewerage district, as the case may be, shall order an election to be 
held at such place in the district as may be designated by the board of com- 
missioners on the question as to whether such bonds shall be issued or not. 
In such election only qualified voters residing in such district shall be al- 
lowed to vote. The board of commissioners shall give notice of such election 
for at least ten days in a newspaper published in the county or by posting 
such notice in three public places in the district. It shall designate the 
time and place and appoint the managers of the election and receive the 
returns of the managers and declare the result. The ballots cast must have 
written or printed on them "for bonds" or "against bonds". 

1942 Code §8555-135; 1934 (38) 1292. 

§ 59-619. Issue and sale of bonds ; use of proceeds. 

If a majority of the votes cast at such election shall be for the issuing 
of bonds, such bonds shall be issued and sold by the board of commissioners 
at not less than par and accrued interest and the proceeds shall be used by 
the board of commissioners for the purpose of construction and equipment in 
behalf of the district of the electric light, water supply, fire protection or 
sewerage system, as the case may be. 

1942 Code § 8555-135; 1934 (38) 1292. 

§ 59-620. Signature of bonds. 

All bonds issued under and in pursuance of the provisions of this chapter 
shall be signed by the chairman of the board of commissioners of the electric 
light, water supply, fire protection and/or sewerage district and by the county 
supervisor of the county in which such district is situated. The names on 
the coupons attached to the bonds may be lithographed, which shall con- 
stitute a proper and sufficient signing thereof. 

1942 Code §8555-135; 1934 (38) 1292. 

§ 59-621. Bonds tax free. 

All such bonds shall be exempt from State, county and municipal taxation. 
1942 Code § 8555-135; 1934 (38) 1292. 

§ 59-622. Government loans. 

The board of commissioners of any electric light, water supply, fire pro- 
tection and/or sewerage district may avail itself of any provision for loans 
to construct electric light systems, water supply systems, fire protection 
systems or sewerage systems from the United States Government, through 
the Reconstruction Finance Corporation, and may issue revenue bonds 
pledging the income from any such system in liquidation of any loan made 
as aforesaid by the United States Government. 

1942 Code § 8555-138; 1934 (38) 1292. 

74 



§ 59-623 Public Works and Certain Public Authorities § 59-625 

§ 59-623. Budget of district. 

To meet the expenses of operation and maintenance and the sinking fund 
and interest charges on the bond issue when the income derived from the 
works is not sufficient to meet such charges, the board of commissioners 
of any such electric light, water supply, fire protection and/or sewerage dis- 
trict shall each year before the levying of taxes make up an estimate or budget 
for such district, which shall give the estimated maintenance and expenses 
for the succeeding year and shall submit it to the county supervisor for ap- 
proval and adoption. Any surplus or deficit that may occur in any one year 
shall be carried forward and applied to the next year's account and properly 
considered in the budget for the expenses of the district for the ensuing year. 

1942 Code §8555-136; 1934 (38) 1292. 

§ 59-624. Levy, collection and disbursement of taxes. 

After the approval thereof by the county supervisor, taxes shall be levied to 
meet such expenses upon all assessable property in the district and upon col- 
lection of them by the county treasurer they shall be disbursed only upon the 
approval of the board of commissioners of the said eletcric light, water supply, 
fire protection and/or sewerage district, as the case may be, by an order on 
the county treasurer drawn by the supervisor of the county in which said dis- 
trict is located. All taxes so levied for any such district shall be kept separate 
on the assessment roll from other levies and moneys so collected shall be kept 
in a separate fund for the district. 

1942 Code §8555-136; 1934 (38) 1292. 

§ 59-625. Construction of chapter; no effect on State Board of Health. 

This chapter being necessary for the public health, safety and welfare, it 
shall be liberally construed to effectuate the purposes thereof. But all func- 
tions, powers and duties of the State Board of Health shall remain unaffected 
by this chapter. 

1942 Code § 8555-139; 1934 (38) 1292. 



75 



§ 59-651 



Code of Laws of South Carolina 



§ 59-652 



CHAPTER 5. 
The Revenue Bond Refinancing Act of 1937. 



Sec. Sec. 

59-651. Short title. 59-669. 

59-652. Definitions. 59-670. 

59-653. Refinancing enterprise. 

59-654. Combination of projects. 59-671. 

59-655. Refunding to be authorized by res- 59-672. 
olution. 59-673. 

59-656. Terms and form of refunding bonds. 59-674. 

59-657. Provisions permissible in resolution 59-675. 
authorizing issue of bonds. 

59-658. Refunding bonds exempt from cer- 59-676. 
tain taxes. 

59-659. Lien of bonds on revenues. 59-677. 

59-660. Refunding bonds may be given se- 
curity of bonds refunded. 59-678. 

59-661. AH refunding bonds ratably secured. 

59-662. Credit of municipality not pledged. 59-679. 

59-663. Execution by former officers valid. 

59-664. Validity of bonds; effect of recital 59-680. 
in resolution. 

59-665. Sale or exchange of bonds. 59-681. 

59-666. Terms of exchanges. 

59-667. Terms of sale. 59-682. 

59-668. Duties of municipality and em- 
ployees. 



Fiscal agent. 

Appointment of receiver of enter- 
prise. 

Powers and duties of receiver. 

Receiver subject to court orders. 

Receiver not to sell property. 

Discharge of receiver. 

Rights and remedies of holders of 
bonds. 

Remedies cumulative; may be re- 
peatedly invoked. 

Effect of waiver of, or delay in, in- 
voking remedy. 

Effect of abandonment or loss of 
suit. 

Compliance with chapter sufficient 
for issue of bonds. 

Debts of municipality not author- 
ized. 

Existing rights not impaired by 
chapter. 

Chapter supplemental; to be liber- 
ally construed. 



§59-651. Short title. 

This chapter may be cited as "The Revenue Bond Refinancing Act of 1937.' 
1942 Code § 9286; 1937 (40) 313. 



§ 59-652. Definitions. 

The following terms wherever used or referred to in this chapter shall have 
the following meanings, unless a different meaning appears from the context: 

(1) The term "municipality" shall mean any county, township, city or in- 
corporated town ; 

(2) The term "governing body" shall mean the board, council or other legis- 
lative body having power to borrow money on behalf of a municipality ; 

(3) The term "latv" shall mean any act or statute, general, special or local, 
of this State, including, without being limited to, the charter of any munici- 
pality ; 

(4) The term "enterprise" shall mean any work, undertaking or project 
which the municipality is or may hereafter be authorized to construct and 
from which the municipality has derived revenues, for the refinancing or the 
refinancing and improving of which enterprise refunding bonds are issued 
under this chapter, and such enterprise shall include all improvements, better- 
ments, extensions and replacements thereto and all appurtenances, facilities, 
lands, rights in land, water rights, franchises and structures in connection 
therewith or incidental thereto; and such term shall likewise include a com- 

76 



§ 59-653 Public Works and Certain Public Authorities § 59-654 

bination of any two or more projects, works, undertakings or systems which 
the governing hod}' shall deem related to each other ; 

(5) The term "Federal agency" shall include the United States of America, 
the President of the United States of America, the Reconstruction Finance 
Corporation or any agency, instrumentality or corporation of the United States 
of America, which has been designated or created by or pursuant to any act 
or joint resolution of the Congress of the United States of America or which 
may be owned or controlled, directly or indirectly, by the United States of 
America; 

(6) The term "improving" shall mean reconstructing, replacing, extending, 
repairing, bettering, equipping, developing, embellishing or otherwise improv- 
ing or any one or more or all of the foregoing ; 

(7) The term "refunding bonds" shall mean notes, bonds, certificates or other 
obligations of a municipality issued pursuant to this chapter or pursuant to any 
other law, as supplemented by or in conjunction with this chapter ; 

(8) The term "refinancing" shall mean funding, refunding, paying or dis- 
charging, by means of refunding bonds or the proceeds received from the sale 
thereof, all or any part of any notes, bonds or other obligations issued to 
finance or to aid in financing the acquisition, construction or improving of an 
enterprise, issued under this chapter for any purpose allowed hereunder and 
payable solely from all or any part of the revenues derived from the opera- 
tions of any enterprise herein defined, including interest thereon in arrears 
or about to become due, whether or not represented by coupons or interest 
certificates; 

(9) The term "revenue" shall mean all fees, tolls, rates, rentals and charges 
to be levied and collected in connection with, and all other income and receipts 
of whatever kind or character derived by the municipality from, the operation 
of any enterprise or arising from any enterprise ; and 

(10) The term "holder of bonds" or "bondholders" or any similar term shall 
mean any person who shall be the bearer of any outstanding refunding bond or 
refunding bonds registered to bearer or not registered or the registered owner 
of any such outstanding bond or bonds which shall at the time be registered other 
than to bearer. 

1942 Code §9287; 1937 (40) 313; 1940 (41) 1682. 

§ 59-653. Refinancing enterprise. 

Any municipality ma)' refinance or refinance and improve any enterprise and 
for such purpose may borrow money and issue refunding bonds from time to 
time. 

1942 Code §9288; 1937 (40) 313. 

§ 59-654. Combination of projects. 

For the purpose of this chapter a governing body may by resolution com- 
bine two or more projects, works, undertakings or systems into a combined 
system or enterprise. A governing body may also combine into one system 
or enterprise any existing project, work, undertaking or system with any pro- 

77 



§ 59-655 Code of Laws of South Carolina § 59-657 

posed project, work, undertaking or system which such governing body shall 
have deemed to be related and the initial construction of the proposed project, 
work, undertaking or system shall, for all purposes of this chapter, be consid- 
ered an improvement, extension or betterment of the existing enterprise. 
Governing bodies are specifically empowered to combine into one enterprise 
an existing waterworks system with a proposed sewer system and, for the 
purpose of this chapter, the initial construction of the sewer system shall be 
deemed an improvement, extension or betterment of the existing waterworks 
system. 

1942 Code §9287; 1937 (40) 313; 1940 (41) 1682. 

§ 59-655. Refunding to be authorized by resolution. 

The refunding shall be authorized by resolution of the governing body of 
the municipality. Such resolution may be adopted at a regular or special 
meeting and at the same meeting at which it is introduced by a majority 
of all the members of the governing body then in office. Such resolution 
shall take effect immediately upon the adoption thereof. No other proceed- 
ings or procedure of any character whatever shall be required for the issuance 
of refunding bonds by the municipality. 

1942 Code §9289; 1937 (40) 313. 

§ 59-656. Terms and form of refunding bonds. 

The refunding bonds may be issued in one or more series, may bear such 
date or dates, may mature at such time or times, not exceeding the period 
of usefulness of the enterprise, as determined by the governing body in its 
discretion, nor in any event exceeding forty years from their respective dates, 
may bear interest at such rate or rates not exceeding the maximum rate of in- 
terest borne by the notes, bonds or other obligations refinanced thereby, may 
be in such denomination or denominations, may be in such form, either coupon 
or registered, may carry such registration and conversion privileges, may 
be executed in such manner, may be payable in such medium of payment, at 
such place or places, may be subject to such terms of redemption, with or 
without a premium, may be declared or become due before the maturity date 
thereof, may provide for the replacement of mutilated, destroyed, stolen or 
lost bonds, may be authenticated in such manner and upon compliance with 
such conditions and may contain such other terms and covenants as may be 
provided by resolution of the governing body of the municipality. Notwith- 
standing the form or tenor thereof and in the absence of an express recital 
on the face thereof that the bond is non-negotiable, all refunding bonds shall 
at all times be, and shall be treated as, negotiable instruments for all purposes. 

1942 Code §9290; 1937 (40) 313. 

§ 59-657. Provisions permissible in resolution authorizing issue of bonds. 

The governing body of any municipality may, in addition to the other 
powers conferred by this chapter, insert provisions in any resolution author- 
izing the issuance of refunding bonds, which shall be a part of the contract 
with the holders of the refunding bonds : 

78 



§59-657 Public Works and Certain Public Authorities §59-657 

(1) As to limitations on the purpose to which the proceeds of sale of any 
issue of refunding bonds or any notes, bonds or other obligations then or 
thereafter to be issued to finance the improving of the enterprise may be ap- 
plied; 

(2) As to limitations on the issuance and on the lien of additional refunding 
bonds or additional notes, bonds or other obligations to finance the improving 
of the enterprise which are secured by or payable from the revenues of such 
enterprise; 

(3) As to limitations on the right of the municipality or its governing body 
to restrict and regulate the use of the enterprise ; 

(4) As to the amount and kind of insurance to be maintained on the enter- 
prise and the use ami disposition of insurance moneys ; 

(5) Pledging all or any part of the revenues of the enterprise to which 
its right then exists or the right to which may thereafter come into existence; 

(6) Covenanting against pledging all or any part of the revenues of the 
enterprise to which its right then exists or the right to which may thereafter 
come into existence ; 

(7) As to events of default and terms and conditions upon which any or all 
of the refunding bonds shall become or may be declared due before maturity 
and as to the terms and conditions upon which such declaration and its con- 
sequences may be waived ; 

(S) As to the rights, liabilities, powers and duties arising upon the breach 
by it of any covenants, conditions or obligations ; 

(9) Vesting in a trustee the right to enforce any covenants made to secure, 
to pay or in relation to the refunding bonds, as to the powers and duties of 
such trustee and the limitation of the liabilities thereof and as to the terms 
and conditions upon which the holders of the refunding bonds or an)- pro- 
portion or percentage of them may enforce any covenants made under this 
chapter or duties imposed hereby ; 

(10) As to a procedure by which the terms of any resolution authorizing 
refunding bonds, or any other contract with bondholders, including but not 
limited to an indenture of trust or similar instrument, may be amended or 
abrogated and as to the amount of refunding bonds the holders of which 
must consent thereto and the manner in which such consent may be given : 

(11) As to the execution of all instruments necessary or convenient in the 
exercise of the powers granted by this chapter or in the performance of the 
duties of the municipality and the officers, agents and employees thereof; 

(12) As to refraining from pledging or in any manner whatever claiming 
or taking the benefit or advantage of any stay or extension law which may 
affect the duties or covenants of the municipality in relation to the refund- 
ing bonds, the performance thereof or the lien of such refunding bonds ; 

(13) As to the purchase out of any funds available therefor, including but 
not limited to the proceeds of refunding bonds, of any outstanding notes, bonds 
or obligations, including, but not limited to, refunding bonds, and the price 
or prices at which and the manner in which such purchases may be made; 

79 



§ 59-658 Code of Laws of South Carolina § 59-660 

(14) As to any other acts and things that may be necessary, convenient or 
desirable in order to secure the refunding bonds or that may tend to make the 
refunding bonds more marketable ; 

(15) As to the manner of collecting the fees, tolls, rates, rentals or other 
charges for the services, facilities or commodities of the enterprise and the 
combining in one bill of the fees, tolls, rates, rentals or other charges for the 
services, facilities or commodities of the enterprise with the fees, tolls, rates, 
rentals or charges for other services, facilities or commodities afforded by the 
municipality ; and 

(16) As to the discontinuance of the services, facilities or commodities of 
the enterprise as well as any other services, facilities or commodities afforded 
by the municipality in the event that the fees, tolls, rates, rentals or other 
charges for the services, facilities or commodities of the enterprise are not 
paid. 

Nothing in this section shall be construed to authorize any municipality 
to make any covenants, to perform any act or to do anything which shall 
require the expenditure in any manner or for any purpose by the munici- 
pality of any funds other than revenues received or receivable from the enter- 
prise. 

1942 Code § 9298; 1937 (40) 313. 

§ 59-658. Refunding bonds exempt from certain taxes. 

The refunding bonds and the income therefrom shall be exempt from tax- 
ation, except inheritance, estate and transfer taxes. 

1942 Code §9295; 1937 (40) 313. 

§ 59-659. Lien of bonds on revenues. 

The refunding bonds shall be special obligations of the municipality and 
shall be payable from and secured by a lien upon the revenues of the enter- 
prise as shall be more fully described in the resolution of the governing body 
authorizing the issuance of the refunding bonds, having due regard to the 
cost of operation and maintenance of the enterprise and the amount or pro- 
portion, if any, of the revenues of the enterprise previously pledged. Any 
municipality may by resolution of its governing body pledge for the security 
of the refunding bonds a fixed amount without regard to any fixed propor- 
tion of the gross revenues of the enterprise. 

1942 Code §9293; 1937 (40) 313. 

§ 59-660. Refunding bonds may be given security of bonds refunded. 

As additional security for any issue of refunding bonds hereunder, or any 
part thereof, any municipality may by resolution of its governing body con- 
fer upon the holders of the refunding bonds all rights, powers and remedies 
which the holders would be entitled to if they were the owners and had pos- 
session of the notes, bonds or other obligations for the refinancing of which 
such refunding bonds shall have been issued, including, but not limited to, 
the preservation of the lien of such notes, bonds or other obligations without 

80 



§ 59-661 Public Works and Certain Public Authorities § 59-664 

extinguishment, impairment or diminution thereof. In the event any munici- 
pality exercises the power conferred by this section (a) each refunding 
bond shall contain a recital to the effect that the holder thereof has been 
granted the additional security provided by this section and (b) each note, 
bond, certificate or other obligation of the municipality to be refinanced by any 
such refunding bonds shall be kept intact and shall not be cancelled or de- 
stroyed until the refunding bonds, and interest thereon, have been finally paid 
and discharged but shall be stamped with a legend to the effect that such note, 
bond, certificate or other obligation has been refunded pursuant to The Reve^ 
nue Bond Refinancing Act of 1937. 
1942 Code §9293; 1937 (40) 313. 

§ 59-661. All refunding bonds ratably secured. 

All refunding bonds of the same issue shall be equally and ratably secured, 
without priority by reason of number or date of bonds, of sale, of execution 
or of delivery, by a lien upon the revenues of the enterprise in accordance 
with the provisions of § 59-659 and the resolution authorizing the issuance 
of such refunding bonds. 

1942 Code §9293; 1937 (40) 313. 

§ 59-662. Credit of municipality not pledged. 

No recourse shall be had for the payment of the refunding bonds, or interest 
thereon, or any part thereof, against the general fund of any municipality, 
nor shall the credit or taxing power of any municipality be deemed to be 
pledged thereto. 

The refunding bonds, and interest thereon, shall not be a debt of the mu- 
nicipality, nor a charge, lien or encumbrance, legal or equitable, upon any 
property of the municipality or upon any income, receipts or revenues 
of the municipality other than such of the revenues of the enterprise as shall 
have been pledged to the payment thereof and every refunding bond shall 
recite in substance that such bond, including interest thereon, is payable 
solely from the revenues pledged to the payment thereof and that the mu- 
nicipality is under no obligation to pay the same, except from such revenues. 

1942 Code §9294; 1937 (40) 313. 

§ 59-663. Execution by former officers valid. 

Refunding bonds bearing the signatures of officers of the municipality in 
office on the date of the signing thereof shall be valid and binding obligations 
of the municipality for all purposes, notwithstanding that before the delivery 
thereof any or all of the persons whose signatures appear thereon shall have 
ceased to be officers of the municipality, the same as if such persons had con- 
tinued to be officers of the municipality until after the delivery thereof. 

1942 Code §9291; 1937 (40) 313. 

§ 59-664. Validity of bonds; effect of recital in resolution. 

The validity of the authorization and issuance of the refunding bonds shall 
not be dependent on or affected in any way by proceedings taken for the im- 
[6SCCode] — 6 81 



§ 59-665 Code of Laws of South Carolina § 59-667 

proving of any enterprise for the refinancing and improving of which the 
refunding bonds are to be issued or by contracts made in connection with the 
improving of any such enterprise. Any resolution authorizing refunding bonds 
may provide that any such refunding bond may contain a recital that such 
refunding bond is issued pursuant to this chapter and any refunding bond con- 
taining such recital under authority of any such resolution shall be conclusive- 
ly deemed to be valid and to have been issued in conformity with the provi- 
sions of this chapter. 

1942 Code §9291; 1937 (40) 313. 

§ 59-665. Sale or exchange of bonds. 

The refunding bonds may be sold or exchanged in installments at different 
times or an entire issue or series may be sold or exchanged at one time. Any 
issue or series of refunding bonds may be exchanged in part or sold in part in 
installments at different times or at one time. The refunding bonds may 
be sold or exchanged at any time on, before or after the maturity of any of 
the outstanding notes, bonds, certificates or other obligations to be refinanced 
thereby. 

1942 Code § 9292; 1937 (40) 313. 

§ 59-666. Terms of exchanges. 

If the governing body determines to exchange any refunding bonds, such 
refunding bonds may be exchanged privately for and in payment and dis- 
charge of any of the outstanding notes, bonds or other obligations of the 
municipality issued to finance or to aid in financing the acquisition, construc- 
tion, improving, refinancing or improving and refinancing of an enterprise. 
The refunding bonds may be exchanged for a like or greater principal amount 
of such notes, bonds or other obligations of the municipality and the principal 
amount of the refunding bonds may exceed the principal amount of such 
outstanding notes, bonds or other obligations to the extent necessary or 
advisable, in the discretion of the governing body, to fund interest in arrears 
or about to become due. The holder or holders of such outstanding notes, 
bonds or other obligations need not pay accrued interest on the refunding 
bonds to be delivered in exchange therefor if and to the extent that interest 
is due or accrued and unpaid on such outstanding notes, bonds or other obliga- 
tions to be surrendered. 

1942 Code §9292; 1937 (40) 313. 

§ 59-667. Terms of sale. 

If the governing body determines to sell any refunding bonds, such refund- 
ing bonds shall be sold at not less than par at public or private sale in such 
manner and upon such terms as the governing body shall deem best for the 
interests of the municipality. 

1942 Code § 9292; 1937 (40) 313. 

82 [6 SC Code] 



§59-668 Public Works and Certain Public Authorities §59-668 

§ 59-668. Duties of municipality and employees. 

In order that the payment of the refunding bonds, and intere t thereon, 
shall be adequately secured, any municipality issuing refunding bonds pur- 
suant to this chapter and the proper officers, agents and employees thereof 
shall: 

(1) Pay or cause to be paid punctually the principal of every refunding 
bond, and the interest thereon, on the date or dates and at the place or places 
and in the manner and out of the funds mentioned in such refunding bonds 
and in the coupons thereto appertaining and in accordance with the resolution 
authorizing their issuance ; 

(2) Operate the enterprise in an efficient and economical manner and estab- 
lish, levy, maintain and collect such fees, tolls, rentals, rates and other charges 
in connection therewith as may be necessary or proper, which fees, tolls, 
rates, rentals and other charges shall be at least sufficient after making due 
and reasonable allowances for contingencies and for a margin of error in 
the estimates (a) to pay all current expenses of operation and maintenance of 
the enterprise, (b) to pay the interest on and principal of the refunding bonds 
as they shall become due and payable, (c) to comply in all respects with the 
terms of the resolution authorizing the issuance of refunding bonds or any 
other contract or agreement with the holders of the refunding bonds and (d) to 
meet any other obligations of the municipality which are charges, liens or 
encumbrances upon the revenues of such enterprise : 

(3) Operate, maintain, preserve and keep, or cause to be operated, main- 
tained, preserved and kept, the enterprise and every part and parcel thereof 
in good repair, working order and condition ; 

(4) Preserve and protect the security of the refunding bonds and the rights 
of the holders thereof and warrant and defend such rights against all claims 
and demands of all persons whomsoever ; 

(5) Pay and discharge, or cause to be paid or discharged, any and all law- 
ful claims for labor, materials and supplies which, if unpaid, might by law 
become a lien or charge upon the revenues or any part thereof prior or su- 
perior to the lien of the refunding bonds or which might impair the security 
of the refunding bonds, to the end that the priority and security of the refund- 
ing bonds shall be fully preserved and protected ; 

(6) Hold in trust the revenues pledged to the payment of the refunding 
bonds for the benefit of the holders of the refunding bonds and apply such 
revenues only as provided by the resolution authorizing the issuance of the 
refunding bonds or, if such resolution shall thereafter be modified in the man- 
ner provided therein or herein, only as provided in such resolution as modified ; 
and 

(7) Keep proper books of record and accounts of the enterprise (separate 
from all other records and accounts) in which complete and correct entries 
shall be made of all transactions relating to the enterprise or any part there- 
of and which, together with all other books and papers of the municipality, 
shall at all times be subject to the inspection of the holder or holders of not 

83 



§ 59-669 Code of Laws of South Carolina § 59-671 

less than ten per cent of the refunding bonds then outstanding or his or 
their representatives duly authorized in writing. 

Compliance with the provisions of this section shall be of the essence of the 
contract of such municipality with the bondholders at all times but none of 
the foregoing duties shall be construed to require the expenditure in any man- 
ner or for any purpose by the municipality of any funds other than revenues 
received or receivable from the enterprise. 

1942 Code § 9297; 1937 (40) 313. 

§ 59-669. Fiscal agent. 

Any municipality may, in connection with the issuance of refunding bonds, 
appoint a fiscal agent, provide for the powers, duties and functions and com- 
pensations of such fiscal agent, limit the liabilities of such fiscal agent and pre- 
scribe a method for the resignation, removal, merger or consolidation of such 
fiscal agent and the appointment of a successor fiscal agent and the transfer 
of rights and properties to such successor fiscal agent, 

1942 Code § 9296; 1937 (40) 313. 

§ 59-670. Appointment of receiver of enterprise. 

If the municipality shall default in the payment of the principal or interest 
on any of the refunding bonds after such principal or interest shall become 
due, whether at maturity or upon call for redemption, and such default shall 
continue for a period of thirty days or if the municipality, the governing body 
or the officers, agents or employees thereof shall fail or refuse to comply with 
the essential provisions of this chapter or shall default in any material respect 
in any agreement made with the holders of the refunding bonds, any holder 
of refunding bonds, or trustee therefor, may apply in an appropriate judi- 
cial proceeding to a State court exercising equitable jurisdiction or any court 
of competent jurisdiction for the appointment of a receiver of the enterprise, 
whether or not all refunding bonds have been declared due and payable and 
whether or not such holder or trustee therefor is seeking or has sought 
to enforce any other right or exercise any remedy in connection with such 
refunding bonds. Upon such application, if it deem such action necessary 
for the protection of the refunding bondholders, such a State court exercising 
equitable jurisdiction may and, if the application is made by the holder of 
twenty-five per cent in principal amount of such refunding bonds then out- 
standing or any trustee for holders of such refunding bonds in such princi- 
pal amount, shall appoint a receiver of the enterprise. 

1942 Code §9299; 1937 (40) 313. 

§ 59-671. Powers and duties of receiver. 

The receiver so appointed shall forthwith, directly or by his agents and 
attorneys, (a) enter into and upon and take possession of the enterprise and 
each and every part thereof and if the court so directs may exclude the mu- 
nicipality, its governing body, officers, agents and employees and all persons 
claiming under them wholly therefrom, (b) have, hold, use, operate, manage 

84 



§ 59-672 Public Works and Certain Public Authorities § 59-674 

and control the enterprise and each and every part thereof and in the name of 
the municipality or otherwise, as the receiver may deem best, and (c) exercise 
all the rights and powers of the municipality with respect to the enterprise 
as the municipality itself might do. Such receiver shall also (a) maintain, 
restore, insure and keep insured the enterprise and from time to time shall 
make all such necessary or proper repairs as to such receiver may seem ex- 
pedient, (b) establish, levy, maintain and collect such fees, tolls, rentals and 
other charges in connection with the enterprise as such receiver may deem 
necessary or proper and reasonable and (c) collect and receive all revenues, 
deposit them in a separate account and apply such revenues so collected and 
received in such manner as the court shall direct. 
19-42 Code §9299; 1937 (40) 313. 

§ 59-672. Receiver subject to court orders. 

Such receiver shall in the performance of the powers herein conferred upon 
him act under the direction and supervision of the court making such appoint- 
ment and shall at all times be subject to the orders and decrees of such court 
and may be removed thereby. Except as provided in § 59-673 nothing herein 
contained shall limit or restrict the jurisdiction of such court to enter such 
other and further orders and decrees as such court may deem necessary or 
appropriate for the exercise by the receiver of any functions specifically set 
forth herein. 

1942 Code § 9299; 1937 (40) 313. 

§ 59-673. Receiver not to sell property. 

Notwithstanding anything in this chapter to the contrary, the receiver 
shall have no power to sell, assign, mortgage or otherwise dispose of any 
assets of whatever kind or character belonging to the municipality and use- 
ful for the enterprise, but the authority of any such receiver shall be lim- 
ited to the operation and maintenance of the enterprise, and no court shall 
have jurisdiction to enter any order or decree requiring or permitting the 
receiver to sell, assign, mortgage or otherwise dispose of any such assets. 

1942 Code § 9299; 1937 (40) 313. 

§ 59-674. Discharge of receiver. 

'Whenever all that is due upon the refunding bonds, and interest thereon, 
and upon any other notes, bonds or other obligations, and interest thereon, 
having a charge, lien or encumbrance on the revenues of the enterprise and 
under any of the terms of any covenants or agreements with bondholders 
shall have been paid or deposited as provided therein and all defaults shall 
have been cured and made good and it shall appear to the court that no default 
is imminent, the court shall direct the receiver to surrender possession of 
the enterprise to the municipality, the same right of the holders of the refund- 
ing bonds to secure the appointment of a receiver to e^ist upen any subse- 
quent default as herein provided. 

1942 Code §9299; 1937 (40) 313. 

85 



§ 59-675 Code of Laws of South Carolina § 59-678 

§ 59-675. Rights and remedies of holders of bonds. 

Subject to any contractual limitations binding upon the holders of any 
issue of refunding bonds, or trustee therefor, including, but not limited to, the 
restriction of the exercise of any remedy to a specified proportion or per- 
centage of such holders, any holder of refunding bonds, or trustee therefor, 
may for the equal benefit and protection of all holders of refunding bonds 
similarly situated : 

(1) By mandamus or other suit, action or proceeding at law or in equity 
enforce his rights against the municipality, its governing body and any of its 
officers, agents and employees and require and compel such municipality, gov- 
erning body or officer, agent or employee to perform and carry out its or his 
duties and obligations under this chapter and its or his covenants and agree- 
ments with the bondholders ; 

(2) By action or suit in equity require the municipality and the govern- 
ing body thereof to account as if they were the trustee of an express trust ; 

(3) By action or suit in equity enjoin any acts or things which may be un- 
lawful or in violation of the rights of the bondholders ; or 

(4) Bring suit upon the refunding bonds. 
1942 Code §9300; 1937 (40) 313. 

§ 59-676. Remedies cumulative ; may be repeatedly invoked. 

No remedy conferred by this chapter upon any holder of refunding bonds, 
or any trustee therefor, is intended to be exclusive of any other remedy, but 
each such remedy is cumulative and in addition to every other remedy and 
may be exercised without exhausting and without regard to any other rem- 
edy conferred by this chapter or by any other law. Every substantive right 
and every remedy conferred upon the holders of refunding bonds may be en- 
forced and exercised from time to time and as often as may be deemed ex- 
pedient. 

1942 Code §9300; 1937 (40) 313. 

§ 59-677. Effect of waiver of, or delay in, invoking remedy. 

No waiver of any default or breach of duty or contract, whether by any hold- 
er of refunding bonds, or any trustee therefor, shall extend to or shall affect 
any subsequent default or breach of duty or contract or shall impair any rights 
or remedies thereon. No delay or omission of any bondholder or any trustee 
therefor to exercise any right or power accruing upon any default shall im- 
pair any such right or power or shall be construed to be a waiver of any such 
default or acquiescence therein. 

1942 Code § 9300; 1937 (40) 313. 

§ 59-678. Effect of abandonment or loss of suit. 

In case any suit, action or proceeding to enforce any right or exercise any 
remedy shall be brought or taken and then discontinued or abandoned, or 
shall be determined adversely to the holder of the refunding bonds, or any 
trustee therefor, the municipality and such holder, or such trustee, shall 

86 



§59-679 Public Works and Certain Public A rities §59-682 

be restored to their former positions and rights and remedies as if no such 
suit, action or proceeding had been brought or taken. 
1942 Code §9300; 1937 (40) 313. 

§ 59-679. Compliance with chapter sufficient for issue of bonds. 

This chapter constitutes full and complete authority for the issuance of 
refunding bonds. No procedure or proceedings, publications, notices, con- 
sents, approvals, orders, acts or things by any governing body of any mu- 
nicipality or any board, officer, commission, department, agency or instru- 
mentality of the Stale or any municipality shall be recpiired to issue any re- 
funding bonds or to do any act or perform anything under this chapter, except 
as may be prescribed in this chapter. 

1942 Code §9301; 1937 (40) 313. 

§ 59-680. Debts of municipality not authorized. 

Nothing in this chapter shall be deemed in any way to authorize any mu- 
nicipality to do anything in any manner or for any purpose which would 
result in the creation or incurring of a debt or indebtedness or the issuance 
of any instrument which would constitute a bond or debt within the meaning 
of any provision, limitation or restriction of the Constitution relating to the 
creation or incurring of a debt or indebtedness or the issuance of an instru- 
ment constituting a bond or a debt. 

1942 Code §9293; 1937 (40) 313. 

§ 59-681. Existing rights not impaired by chapter. 

Nothing in this chapter shall be deemed in any way (a) to alter the terms 
of any agreements made with the holders of any outstanding notes, bonds 
or other obligations of the municipality, (b) to authorize the municipality 
to alter the terms of any such agreements or (c) to impair or to authorize 
the municipality to impair the rights and remedies of any creditors of the mu- 
nicipality. 

1942 Code §9293; 1937 (40) 313. 

§ 59-682. Chapter supplemental ; to be liberally construed. 

The powers conferred by this chapter shall be in addition and supplemental 
to, and not in substitution for, and the limitations imposed by this chapter 
shall not affect, the powers conferred by any other law. This chapter is reme- 
dial in nature and shall be liberally construed. 

1942 Code §9301; 1937 (40) 313. 



87 



Title 60. 
Registration and Recordation.* 

Chap. 1. Registers of Mesne Conveyances, §§ 60-1 to 60-8. 

2. Recording Generally, §§ 60-51 to 60-69. 

3. When Recordation Essential to Validity, §§ 60-101 to 60-109. 

4. Indexing and Filing, §§ 60-151 to 60-161. 

5. Plats, Blue Prints, Photostatic Copies, etc., §§ 60-201 to 60-209. 

6. Deeds of Railroads, §§ 60-251 to 60-256. 

7. Chattel Mortgages, §§ 60-301 to 60-308. 

8. Marketing Contracts, §§ 60-351 to 60-356. 

9. Veterans' Discharges, §'§ 60-401 to 60-409. 



CHAPTER 1. 

Registers of Mesne Conveyances. 

t 

Sec. Sec. 

60-1. Election and term of registers of 60-6.1. Office to exist only in Charleston, 

mesne conveyances. Greenville and Spartanburg Coun- 

60-2. Bond and oath. ties. 

60-3. Deputy registers. 60-7. Clerk of court in other counties to 
60-4. Location and office hours of Charles- perform duties of such registers. 

ton register. 60-8. Register to give certified copies of 
60-5. Vacancies in Charleston and Green- recorded instruments; incorrect 

ville Counties. copy. 

60-6. Vacancy in Spartanburg County. 

§ 60-1. Election and term of registers of mesne conveyances. 

The register of mesne conveyances for Charleston County shall be elected by 
the qualified voters of said county at the general election to be held in the year 
1954 and at every alternate general election thereafter and shall hold office for 
four years and until his successor is elected and qualified. The registers of 
mesne conveyances for Greenville and Spartanburg Counties shall be elected by 
qualified voters of said counties, respectively, at the general election to be held 
in 1952 and at every alternate general election thereafter and shall hold office 
until their successors are elected and (a) in Greenville County, commissioned 
and enter upon the duties of their offices and (b) in Spartanburg County, qual- 
ified. 

1942 Code §3628; 1932 Code §3628; Civ. C. '22 §2172; Civ. C. '12 §1348; Civ. C. '02 
§944; G. S. 764; R. S. 814; 1812 (5) 674; 1819 (6) 120; 1881 (17) 682; 1883 (18) 453; 1898 
(22) 690; 1908 (25) 1020. 



* As to fees and costs generally, see Title 27. As to recording of mortgages under the 
Rural Electric Cooperative Act, see § 12-1008. As to recordation of leases required for 
notice, see § 41-4. As to the Uniform Federal Tax Lien Registration Act, see §§ 65-2121 
to 65-2727. 

89 



§ 60-2 Code of Laws of South Carolina § 60-6 

§ 60-2. Bond and oath. 

The registers of mesne conveyances in Charleston and Greenville Counties, 
before entering on the duties of their office, shall give bond, with three good 
sureties, to be approved by the governing bodies of said counties, respective- 
ly, and of the form required by law, the register of Charleston County in the 
sum of five thousand dollars and the register of Greenville County in the sum 
of ten thousand dollars. The register of mesne conveyances for Spartan- 
burg County shall give bond in the sum of five thousand dollars. Such bonds 
shall be lodged in the office of the State Treasurer, and such registers of 
mesne conveyances shall take the oath of office required by the Constitution 
and also the additional oaths prescribed in §§ 50-52 to 50-54 endorsed and sub- 
scribed on their commissions and enter them, with the endorsement, on the 
records of the office. 

1942 Code §3630; 1932 Code §3630: Civ. C. '22 §2174; Civ. C. '12 §1350; Civ. C. 
'02 § 946; 1839 (11) 116; 1877 (16) 301; 1889 (20) 478; 1893 (21) 481; 1908 (25) 1020; 1930 
(36) 1377. 

§ 60-3. Deputy registers. 

In Charleston, Greenville and Spartanburg Counties the register of mesne 

conveyances may appoint a deputy in the same manner that clerks of the 

court are authorized to do. 

1942 Code §3631; 1932 Code §3631; Civ. C. '22 §2175; Civ. C. '12 §1351; Civ. C. '02 
§ 947; G. S. 767; R. S. 817; 1839 (11) 116. 

§ 60-4. Location and office hours of Charleston register. 

The office of the register of mesne conveyances for Charleston County shall 

be in the building in the city of Charleston commonly referred to as the fireproof 

building and shall be kept open from nine o'clock A.M. to six o'clock P.M. every 

day except Sunday and public holidays. 

1942 Code §3630; 1932 Code §3630; Civ. C. '22 §2174; Civ. C. '12 §1350; Civ. C. '02 
§946; 1839 (11) 116; 1877 (16) 301; 18S9 (20) 478; 1893 (21) 481; 1908 (25) 1020; 1930 
(36) 1377. 

§ 60-5. Vacancies in Charleston and Greenville Counties. 

In case of any vacancy in the office of register of mesne conveyances in 
Charleston County or Greenville County the auditor of the county in which 
such vacancy shall occur shall take charge of the office and all papers there- 
in and discharge the same duties, receive the same fees or salary and be sub- 
ject to the same liability as is by law provided for a register of mesne con- 
veyances, until a register of mesne conveyances shall be elected and com- 
missioned for such county. 

1942 Code §3637; 1932 Code §3639; Civ. C. '22 §2183; Civ. C. '12 §1359; Civ. C. '02 
§952; 1893 (21) 400; 1908 (25) 1021; 1914 (28) 483. 

§ 60-6. Vacancy in Spartanburg County. 

In Spartanburg County a vacancy in the office of register of mesne conveyances 
shall be filled by the Governor until a register of mesne conveyances shall be 
elected and commissioned, which shall be done at the next general election. 

90 



§ 60-6.1 Registration and Recordation § 60-8 

1942 Code §3637; 1932 Code §3639; Civ. C. '22 §2183; Civ. C. '12 § 13S9; Civ. C. '02 
§952; 1S93 (21) 400; 1908 (25) 1021; 1914 (28) 483. 

§ 60-6.1. Office to exist only in Charleston, Greenville and Spartanburg Coun- 
ties. 
The office of register of mesne conveyances shall exist only in Charleston, 
Greenville and Spartanburg Counties. 

1042 Code §3629; 1932 Code §3629; Civ. C. "22 §2173; Civ. C. '12 §1349; Civ. C. '02 
§945; 1779 (7) 296; 1S39 (11) 115; 1S82 (18) 682; 1896 (22) 122; 1908 (25) 1020. 

§ 60-7. Clerk of court in other counties to perform duties of such registers. 

In every county in the State other than Charleston, Greenville and Spartan- 
burg the duties prescribed by this Code for the register of mesne conveyances 
shall be performed by the clerk of the court, who shall have all the powers and 
emoluments given the register of mesne conveyances in Charleston, Greenville 
and Spartanburg Counties. 

1942 Code §3629; 1932 Code §3629: Civ. C. '22 §2173; Civ. C. '12 §1349; Civ. C. '02 
§945; 1779 (7) 296; 1839 (11) 115; 1882 (18) 682; 1896 (22) 122; 1908 (25) 1020. 

Offices were separate though duties per- were performed by the same officer. War- 
formed by same officer. — Prior to the act ing v. Miller Batting; & Mfg. Co., 36 S. C. 
of 1896 the offices were separate and dis- 310, 15 S. E. 132 (1S92). 
tinct in these counties, though the duties 

§60-8. Register to give certified copies of recorded instruments; incorrect 
copy. 

The register of mesne conveyances, or his deputy, shall be required, on 

application, to give a certified copy of any writing recorded in his office, 

the fees for such copy being first paid in advance, if required or tendered, as 

the case may be. If the register or his deputy shall furnish an incorrect 

transcript of any deed recorded he shall forfeit and pay to the party the 

damages that may accrue in consequence thereof. 

1942 Code §3636; 1932 Code §3638; Civ C. '22 §2182; Civ. C. '12 §1358; Civ. C. '02 
§951; G. S. 720; R. S. 821; 1698 (2) 138; 1839 (11) 116; 1843 (11) 255; 1947 (45) 150. 



CHAPTER 2. 

Recording Generally. 

Sec. Sec. 

60-51. Affidavit prerequisite for recording. 60-57. Recordation of marriage scttle- 

60-52. Blank. ments, conveyances, mortgages, 

60-53. Effect of failure of officer to state renunciations of dower, etc. 

serial number. 60-58. Memorandum of livery of seizin to 

60-54. Special provision for duration of be recorded. 

war. 60-59. Certain conveyances not endorsed 

60-55. When affidavit of subscribing wit- by auditor validated. 

ness cannot be procured. 60-60. Mortgages of interests in real es- 

60-56. Auditor's endorsement required be- fate. 

fore recordation. 60-61. Validation of certain recordations. 

91 



§ 60-51 



Code of Laws of South Carolina 



§60-51 



Sec 

60-62. Validation of other instruments. 

60-63. Separate books for chattel and real 

mortgages. 
60-64. Mortgages of both real and personal 

property. 
60-65. United States tax commissioners' 

titles to be recorded in Beaufort 

County. 



Sec. 

60-66. Recording proceedings in bankrupt- 
cy. 

60-67. Papers to be recorded free for vet- 
erans, etc., in Union County. 

60-68. Record and copies of papers for 
charitable organizations in Union 
County. 

60-69. Endorsement on paper recorded. 



§ 60-51. Affidavit prerequisite for recording. 

Before any deed or other instrument in writing can be recorded in this 
State the execution thereof shall be first proved by the affidavit of a sub- 
scribing witness to such instrument, taken before some officer within this 
State competent to administer an oath. If the affidavit be taken without 
the limits of this State it may be taken before (a) a commissioner appointed 
by dedimus issued by the clerk of the court of common pleas of the county 
in which the instrument is to be recorded, (b) a commissioner of deeds 
of this State, (c) a clerk of a court of record who shall make certificate there- 
of under his official seal, (d) a justice of the peace who must append to the 
certificate his official seal, (e) a notary public who shall affix thereto his 
official seal within the State of his appointment, which shall be a sufficient 
authentication of his signature, residence and official character, (f) before 
a minister, ambassador, consul general, consul or vice consul or consular 
agent of the United States of America or (g) in the case of any officer or en- 
listed man of the United States Army, Air Force, Navy, Marine Corps or 
Coast Guard on active duty outside the State or any civilian employee of any 
such organization on active duty outside the continental confines of the 
United States, any commissioned officer of said Army, Air Force, Navy, 
Marine Corps or Coast Guard, if such probating officer shall state his rank, 
branch and organization. 

1942 Code §3632; 1932 Code §3632; Civ. C. '22 §2176; Civ. C. '12 § 1352; Civ. C. *02 
§948; G. S. 768; R. S. 818; 1880 (17) 319; 1889 (20) 367; 1908 (25) 104; 1909 (26) 84; 
1910 (26) 621; 1951 (47) 447. 



Cross reference. — As to duration of valid- 
ity of affidavit taken before officer in armed 
forces or merchant marine, see § 44-475. 

Registering the deed is not to perfect it 
but to publish it. Dawson v. Dawson, Rice 
(14 S. C. Eq.) 243. 

And registry without probate is not no- 
tice. Woolfolk v. Graniteville Mfg. Co., 
22 S. C. 332 (1885). 

Object of probate requirement. — The re- 
quirement of this section that a deed or 
mortgage be probated before it is recorded 
is to secure the authenticity of the instru- 
ment. Dillon & Son Co. v. Oliver, 106 S. 
C. 410, 91 S. E. 304 (1917). 

A notary who is a party to or interested 
in a deed cannot take the probate. Watts 
v. Whetstone, 79 S. C. 357, 60 S. E. 703 
(1908). 



Nor is the probate of a deed executed in 
this State before a magistrate in Georgia 
valid. Woolfolk v. Graniteville Mfg. Co., 
22 S. C. 332 (1885). 

A chattel mortgage must have at least 
one witness and probate to entitle it to rec- 
ord. McGowan v. Reid, 27 S. C. 262, 3 S. E. 
337 (1887). 

But witness may be member of mortgage 
firm. — The fact that the subscribing wit- 
ness to a chattel mortgage who made the 
affidavit for record was a member of the 
mortgagee firm does not affect the opera- 
tion of the record as notice, where the in- 
terest of the witness does not appear on 
the face of the record. Dillon & Son Co. 
v. Oliver, 106 S. C. 410, 91 S. E. 304 (1917). 

A mechanic's lien need not be probated. 



92 



§ 60-52 Registration and Recordation § 60-56 

Murphy v. Valk, 30 S. C. 262, 9 S. E. 101 Aiken, 61 S. C. 110, 39 S. E. 233 (1901); 

(1889). Fuller v. Missroom, 35 S. C. 314, 14 S. E. 

For additional related cases, see Farmers 714 (1892). 
Bank & Trust Co. v. Fudge, 113 S. C. 23, Applied in Arthur v. Screven, 39 S. C. 77, 

100 S. E. 62S (1919); Richland County v. 17 S. E. 640 (1893); In re Rosenthal, 238 

American Surety Co., 92 S. C. 329, 75 S. E. F. 597 (1916). affirmed in 246 F. 390 (1917) ; 

549 (1912); McCreary v. Coggeshall, 74 S. Bank of Dillon v. Murchison, 213 F. 147 

C. 42, 53 S. E. 97S (1906); Milford v. (1914). 

§ 60-52. Blank. 

§ 60-53. Effect of failure of officer to state serial number. 

No instrument otherwise entitled to admission to record shall be denied 
record on account of the failure of the officer taking the probate to state his 
service serial number. 

1944 (43) 1323. 

§ 60-54. Special provision for duration of war. 

For the duration of the present war and six months thereafter, it shall 
be lawful for the clerks of court, registers of mesne conveyances and all other 
public officers of this State whose duty it is, under the law, to file and record 
written instruments in the nature of verifications of pleadings, proofs of claims, 
powers of attorney, conveyances of real estate, mortgages of real estate, mort- 
gages of personal property and renunciations of dower, to do so when the exe- 
cution of such instrument has been proved by the affidavit of a subscribing 
witness thereto or by an acknowledgment of same before some officer or per- 
son authorized by the law of this State to administer oaths, regardless of the 
State or county in which such instrument may have been executed. When 
such an instrument in writing, whether the execution of it has been proved 
by probate or acknowledgment, has been recorded, such recording shall con- 
stitute notice in the same manner and for the same purpose as provided by 
law in this State for recording instruments. 

1944 (43) 1323. 

§ 60-55. When affidavit of subscribing witness cannot be procured. 

When the affidavit of a subscribing witness cannot be had by reason of the 
death, insanity or absence from the State of such witness, any such instru- 
ment may be recorded upon proof of such fact and of the handwriting of the 
parties who signed the instrument and of the subscribing witnesses by proper 
affidavit, the proof in every case to be recorded with the instrument. 

1942 Code §3632; 1932 Code §3632; Civ. C. '22 §2176; Civ. C. '12 § 1352; Civ. C. '02 
§948; G. S. 768; R. S. 818; 1880 (17) 319; 1889 (20) 367; 1908 (25) 104; 1909 (26) 84; 
1910 (26) 621. 

§ 60-56. Auditor's endorsement required before recordation. 

Before any deed of conveyance of real property, including timber deeds, 
timber leases and contracts of conveyance of timber, can be placed on record 
in the office of the register of mesne conveyance or clerk of court it must 

93 



§ 60-57 Code of Laws of South Carolina § 60-59 

have thereon the endorsement of the county auditor that it has been entered of 

record in his office. 

1942 Code §3634; 1932 Code §3634; Civ. C. '22 §2178; Civ. C. '12 §1354; Civ. C. '02 
§949; R. S. 918; 1881 (17) 1015; 1937 (40) 105. 

§ 60-57. Recordation of marriage settlements, conveyances, mortgages, re- 
nunciations of dower, etc. 
The register of mesne conveyances is required to record in well bound books, 
of the size not less than those denominated "Medium," kept for that purpose, 
in the order of the times at which they may be brought to his office, all mar- 
riage settlements and all conveyances and mortgages, renunciations of dower 
and other writings concerning the titles to lands situate in his county which 
may be lodged with him to be recorded if the execution of any such writing 
shall be proved by affidavit of a subscribing witness, or otherwise, as herein 
provided. Every such writing shall be recorded within one month after its 
lodgment and the recording shall bear even date with the lodgment. On 
every such writing shall be endorsed a certificate, to be signed by the reg- 
ister or his deputy, specifying the time when and book and page where it was 
recorded. In the book the names of the parties and nature of the writing shall 
precede the registry and after it shall follow the date of the registry and mem- 
orandum of the person to whom the original writing has been delivered. 

1942 Code §3635; 1932 Code §3635; Civ. C. '22 §2179; Civ. C. '12 § 1355; Civ. C. '02 
§950; G. S. 769; R. S. 820; 1839 (11) 115; 1928 (35) 1185. 

A deed, which was in fact a mortage and notice. Cox v. Enterprise Bank, 115 S. C. 
which was recorded in the deed book, was 191, 104 S. E. 693 (1920). 

§ 60-58. Memorandum of livery of seizin to be recorded. 

When any deeds or conveyances shall be acknowledged or proved as pro- 
vided in this chapter in order to their being recorded, the memorandum of 
delivery and seizin thereupon made in deeds of feoffment shall in like man- 
ner be acknowledged or proved and shall be recorded with the deeds. Any 
such memorandum proved and acknowledged as aforesaid shall be taken 
and deemed a sufficient livery and seizin of the land or other real estate 
conveyed. 

1942 Code §8885; 1932 Code §8885; Civ. C. '22 §5316; Civ. C. '12 §3546; Civ. C. '02 
§2460; G. S. 1780; R. S. 1972; 1785 (7) 233. 

§ 60-59. Certain conveyances not endorsed by auditor validated. 

All conveyances of real estate which were recorded by a clerk of court or 
register of mesne conveyances of any of the several counties between De- 
cember 14 1876 and May 1 1882, without the endorsement of the auditor of 
the county, have heretofore been declared to be as valid and binding, to all 
intents and purposes, as if such conveyances had been endorsed by the auditor 
of the county, as required by law. 

1942 Code §8883; 1932 Code §8883; Civ. C. '22 §5314; Civ. C. '12 §3544; Civ. C. '02 
§2458; R. S. 1970; 1877 (16) 321. 

Quoted in McNamee & Co. v. Huckabee, 
20 S. C. 190 (1883). 

94 



§ 60-60 Registration and Recordation § 60-64 

§ 60-60. Mortgages of interests in real estate. 

Mortgages of leaseholds or other interests in real estate within the State 
and mortgages of dwellings or structures thereon, whether in one instru- 
ment or in separate instruments, shall be deemed to be mortgages of real 
estate and shall be recorded in the same manner as mortgages of real estate. 
The notice of such record shall be the same as the notice of the record of real 
estate mortgages and to the same extent. And the notice of the record of all 
mortgages of leaseholds or other interests in real estate in the State and of 
dwellings and structures thereon which have heretofore been recorded in 
the same manner as real estate mortgages shall be the same notice as given 
by the record of real estate mortgages and to the same extent. 

1943 (43) 148. 

§ 60-61. Validation of certain recordations. 

The probate of any and all deeds or other instruments in writing bearing 

date prior to March 1 1909, whether recorded or not on that day, which are 

in compliance with the requirements of §§ 60-51 and 60-55 are validated and 

their probate confirmed. 

1942 Code §3632; 1932 Code §3632; Civ. C. '22 §2176; Civ. C. '12 §1352; Civ. C. '02 
§948; G. S. 768; R. S. 818; 18S0 (17) 319; 1889 (20) 367; 1908 (25) 104; 1909 (26) 84; 
1910 (26) 621. 

§ 60-62. Validation of other instruments. 

All such instruments which have been executed and the execution thereof 
proved by acknowledgment, as provided in § 60-54, since January 1 1940 are 
hereby confirmed and ratified and the recordation of such instruments de- 
clared to be legal notice of the existence thereof as fully as if they had been 
duly executed and probated in conformity with the law of this State as it 
then existed with reference to the probate and recording of written instru- 
ments. 

1944 (43) 1323. 

§ 60-63. Separate books for chattel and real mortgages. 

Different sets of books shall be provided by the clerks and registers of mesne 

conveyances of the several counties for the recording of chattel mortgages 

and mortgages on real estate, in one of which sets all chattel mortgages 

shall be recorded and in the other set all mortgages on real estate shall be 

recorded. 

1942 Code §3635; 1932 Code §3635; Civ. C. '22 §2179; Civ. C. '12 §1355; Civ. C. '02 
§950; G. S. 769; R. S. 820; 1839 (11) 115; 1928 (35) 1185. 

§ 60-64. Mortgages of both real and personal property. 

Mortgages which cover or embrace both real estate and personal property 
shall be recorded only in the set of books provided for the recording of mort- 
gages on real estate, but shall be indexed both in the index and cross-index 
to real estate mortgages and in the index and cross-index to chattel mort- 
gages. Such recording and indexing shall be a sufficient record of any such in- 
strument as a chattel mortgage. 

95 



§ 60-65 Code of Laws of South Carolina § 60-68 

1942 Code §3635; 1932 Code §3635; Civ. C. '22 §2179; Civ. C. '12 § 1355; Civ. C. '02 
§ 950; G. S. 769; R. S. 820; 1839 (11) 115; 1928 (35) 1185. 

§ 60-65. United States tax commissioners' titles to be recorded in Beaufort 

County. 

The holders of all certificates or titles issued by or under the authority 

of the United States direct tax commissioners for this State shall be allowed 

to record them in the office of the clerk of court for the county of Beaufort. 

When such certificates shall have been so recorded, such recording shall be 

deemed to a be a legal notice of title to the land described in them. 

1942 Code §8888; 1932 Code §8888; Civ. v. '22 §5319; Civ. C. '12 §3549; Civ. C. '02 
§2463; G. S. 1783; R. S. 1975; 1868 (14) 14. 

§ 60-66. Recording proceedings in bankruptcy. 

A certified copy of a petition, with schedules omitted, commencing a pro- 
ceeding under the Bankruptcy Act of the United States, of the decree of 
adjudication in such proceeding or of the order approving the bond of the 
trustees appointed in such proceeding may be filed, indexed and recorded in 
the office of the register of mesne conveyances or clerk of court in those coun- 
ties in which the office of register of mesne conveyances has been abolished, 
in the same manner as deeds. The register of mesne conveyances or the clerk 
of court in those counties in which the office of register of mesne conveyances 
has been abolished shall file, index under the name of the bankrupt and record 
such certified copies filed for record in the same manner as deeds, for which 
services he shall be entitled to the same fees as are provided by law for 
filing, indexing and recording deeds. 

1942 Code §3622-2; 1939 (41) 185. 

§ 60-67. Papers to be recorded free for veterans, etc., in Union County. 

Until January 1 1955 the clerk of court and probate judge of Union County 
shall record in their respective offices any deed, mortgage, power of attorney 
or any record forming a part of the judgment roll or other paper in any legal 
matter that is not contested for any member of the armed forces of the United 
States of America, any war veteran or the wife or husband of any such member 
of such armed forces or the wife, widow, husband or widower of any such 
veteran, without the payment of any fees or costs whatsoever. 

1949 (46) 1708. 

§ 60-68. Record and copies of papers for charitable organizations in Union 
County. 
Until January 1 1955 the clerk of court and probate judge of Union County 
are authorized and directed to record for any charitable organization any paper 
or instrument to be recorded in their respective offices, without the payment 
of any fees or costs whatsoever, when it is certified to such officer that the 
paper recorded is for a charitable organization and the recording of such 
paper without charge is approved by the county treasurer. The probate judge 
is likewise authorized, upon such certification and such approval and for such 

96 



§ 60-69 Registration and Recordation § 60-101 

period of time, to furnish a certified copy of any paper or instrument in his 
office without the payment of any fees or costs whatsoever. 
1949 (46) 1708. 

§ 60-69. Endorsement on paper recorded. 

Whenever any instrument in writing required by law to be filed and re- 
corded has been so recorded, the clerk or register shall endorse on such instru- 
ment a certificate showing the date and the book and page where recorded and 
for this certificate no fee shall be charged or collected. 

1942 Code §4939; 1932 Code §4939; Civ. C. '22 §5735; Civ. C. '12 §4216; Civ. C. '02 
§3106; 1898 (22) 691. 



CHAPTER 3. 
When Recordation Essential to Validity. 

Sec. Sec. 

60-101. Conveyances, etc., valid as to pur- 60-105. Execution and probate of assign- 
chasers, etc., only when recorded. ment. 

60-102. Where recordation of such instru- 60-106. Assignment, release, etc., of liens, 

ments affecting real property 60-107. Where such instruments recorded, 

made; requirements for such rec- 60-10S. How recordation of such instru- 

ordation. ments made; requirements for 

60-103. Release or satisfaction of lien on such recordation. 

real estate good against unrecord- 60-109. What constitutes notice of unre- 

ed assignment, etc. corded instrument. 

60-104. Recordation of assignment. 

§ 60-101. Conveyances, etc., valid as to purchasers, etc., only when recorded. 
All deeds of conveyance of lands, tenements or hereditaments, either in 
fee simple or for life, all deeds of trust or instruments in writing conveying 
either real or personal estate, creating a trust in regard to such property or 
charging or encumbering it, |all mortgages or instruments in writing in the 
nature of a mortgage of any property, real or personal/ all marriage settle- 
ments or instruments in the nature of a settlement of a marriage, all leases 
or contracts in writing made between landlord and tenant for a longer period 
than twelve months, all statutory liens on buildings and lands for materials or 
labor furnished on them, all statutory liens on ships and vessels, all certifi- 
cates of renunciation of dower, all contracts for the purchase and sale of real 
property, all assignments, satisfactions, releases and contracts in the nature of 
subordinations, waivers and extensions of landlords' liens, laborers' liens, 
sharecroppers' liens or other liens on real or personal property, or both, cre- 
ated by law or by agreement of the parties and generally all instruments 
in writing required by law to be recorded in the office of the register of mesne 
conveyances or clerk of court in those counties where the office of register 
of mesne conveyances has been abolished or in the office of the Secretary 
of State delivered or executed on or after August 1 1934, except assignments 
and satisfactions of conditional sale contracts securing the purchase money 
[6 SC Code]— 7 97 



§ 60-101 



Code of Laws of South Carolina 



§60-101 



of motor vehicles or refrigerators, shall be valid so as to affect the rights 
of subsequent creditors (whether lien creditors or simple contract creditors) 
or purchasers for valuable consideration without notice only from the day and 
hour when they are recorded in the office of the register of mesne conveyances 
or clerk of court of the county in which the property affected is situated, in 
the case of real estate or in the case of personal property, in which the owner 
of such property resides, if he resides within the State, or, if he resides with- 
out the State the county in which such personal property is situated at the 
time of the delivery or execution of such deed or instrument. 

But chattel mortgages or instruments in the nature thereof, securing the 
payment of the purchase price or any portion thereof of household furniture 
and furnishings, appliances, refrigerators, radios, and musical instruments, 
shall be valid against the lien of a landlord for rent when so recorded within 
five days from the date of the execution thereof. 

1942 Code §8875; 1932 Code §8875; Civ. C. '22 §5312; Civ. C. '12 §3542; Civ. C. '02 
§2456; G. S. 1776; R. S. 1968; 1879 (16) 92; 1898 (22) 746; 1909 (26) 190; 1914 (28) 482; 
1925 (34) 85; 1927 (35) 72; 1934 (38) 1521; 1936 (39) 1387. 



I. General Consideration. 
II. Particular Instruments. 

A. Mortgages. 

B. Bond for Title. 

C. Contracts. 

D. Marriage Settlements. 

III. Notice. 

IV. Priorities. 

I. GENERAL CONSIDERATION. 

History of amendments to section. — See 
Carroll v. Cash Mills, 125 S. C. 332, 118 
S. E. 290 (1923); Firestone Tire & Rubber 
Co. v. Cross, 17 F. (2d) 417 (1927). 

Section was not repealed. — That part of 
this section providing that in order to bind 
a bona fide purchaser for value all leases 
made for more than a year should be re- 
corded was not impliedly repealed by § 41-4 
which requires that in order to give notice 
to third persons any lease or agreement for 
the use or occupancy of real estate shall be 
recorded in the same manner as a deed. 
Barksdale v. Hinson, 212 S. C. 1, 46 S. E. 
(2d) 170 (1948). 

The purpose of this section is to protect 
subsequent creditors and purchasers for 
value without notice. Epps v. McCallum 
Realty Co., 139 S. C. 481, 13S S. E. 297 
(1927). 

Section 57-308 must be construed with 
this section. — Section 57-30S, relating to 
the recording of agreements reserving any 
interest in personal property, must be con- 
strued with this section and reference had 
to this section for the time, manner and 
effect of the recording required. Firestone 
Tire & Rubber Co. v. Cross, 17 F. (2d) 417 
(1927). 



98 



Also § 57-305.— This section must be 
construed in connection with § 57-305, re- 
quiring enforceable agreements to be in 
writing, since this section can relate to 
enforceable agreements only. Epps v. 
McCallum Realty Co., 139 S. C. 481, 138 
S. E. 297 (1927). 

Federal courts are bound by state de- 
cisions construing registration statutes. — 
Federal courts, in passing on the effect 
to be given registration statutes and the 
failure to comply with them, are bound by 
decisions of the state courts interpreting 
such statutes. Firestone Tire & Rubber 
Co. v. Cross, 17 F. (2d) 417 (1927). 

Consequently, the rule of the state courts 
as to recordation of instruments is applied 
in bankruptcy courts. Industrial Finance 
Corp. v. Capplemann, 284 F. 8 (1922). 

But a trustee in bankruptcy is entitled 
to recover property taken by a holder of 
an unrecorded trust receipt. Industrial Fi- 
nance Corp. v. Capplemann, 284 F. 8 (1922). 

Recordation is not necessary between 
parties. — As between parties thereto, it is 
not necessary to the validity of any instru- 
ment contemplated by this section that it be 
recorded since recording becomes material 
only where there are double conveyances 
by the same person. Epps v. McCallum 
Realtv Co., 139 S. C. 4S1, 138 S. E. 297 
(1927). 

Except as to subsequent purchasers or 
subsequent creditors, a deed is not affected 
bv not being recorded. Martin v. Quattle- 
bam, 3 McC. (14 S. C. L.) 205; Martin v. 
Sale, Bail. (8 S. C. Eq.) 1; Summers v. 
Brice, 36 S. C. 204, 15 S. E. 375 (1S92). 

[6SCCode] 



§60-101 



Registration and Recordation 



§60-101 



The words "subsequent creditors" mean 
only those who become such after the 
execution of a mortgage, not including the 
mortgagee. Simmons v. Greer, 174 F. 
654 (1909). 

Prior creditor was unable to benefit under 
this section. — See Goodrich Silvertown v. 
Rogers, 1S9 S. C. 101, 200 S. E. 91 (1938). 

Recordation is in county where land is 
situated. — Under this section, where the 
land was situated in D. county, but the deed 
was recorded in F. county, the record in 
that county was a nullity as against a subse- 
quent mortgagee without notice. Cole v. 
Ward, 79 S. C. 573, 61 S. E. 108 (190S). 

As to recordation in the county where 
deed was properly probated, see Watts v. 
Whetstone, 79 S. C. 357, 60 S. E. 703 
(1908); Woolfork v. Graniteville Mfg. Co., 
22 S. C. 332 (18S5). 

As to former wording of this section, see 
In re Cannon, 121 F. 582 (1903); Simmons 
v. Greer. 174 F. 654 (1909); Perkins v. 
Loan & Exch. Bank, 43 S. C. 39, 20 S. E. 
759 (1895); Mowry v. Crocker, 33 S. C. 436. 
12 S. E. 3 (1890): Brown v. Sartor, 87 
S. C. 116, 69 S. E. 88 (1910); Turpin v. 
Sudduth, 53 S. C. 295, 31 S. E. 245, 306 
(1898): Avery v. Wilson, 47 S. C. 78, 25 
S. E. 286 (1896). 

For additional related cases, as to what 
constitutes "property" and "instrument" 
under section, see Townsend v. Ashepoo 
Fert. Co., 212 F. 97 (1914), cert, denied 
238 U. S. 619, 35 S. Ct. 601, 59 L. Ed. 
1492 (1915); as to conditional sales, see 
Pridmore v. Puffer Mfg. Co., 163 F. 496 
(1908) ; concerning rights of purchasers, see 
Blackwell v. Harrelson, 99 S. C. 264, 84 
S. E. 233 (1914); in connection with me- 
chanic's lien, see Murpliv v. Valk, 30 S. C. 
262, 9 S. E. 101 (1889): as to deeds, see 
Righton v. Righton, 1 Mill (8 S. C. L.) 
130; Harrison v. Hollis, 2 N. & McC. (11 
S. C. L.) 578; Barnwell v. Porteus, 2 Hill 
(11 S. C. Eq.) 219; Cooper v. Day, 1 Rich. 
(18 S. C. Eq.) 26; Steele v. Mansell, 6 Rich. 
(40 S C. L.) 437; Godbold v. Lambert, 8 
Rich. (29 S. C. Eq.) 155; Bossard v. White, 
9 Rich. (30 S. C. Eq.) 483; Lott v. DeGraf- 
fenreid, 10 Rich. (31 S. C. Eq.) 346; 
Leger v. Doyle, 11 Rich. (45 S. C. L.) 109; 
Belk v. Massey, 11 Rich. (45 S. C. L.) 614: 
Youngblood v. Keadle, 1 Strob. (31 S. C. 
L.) 121: Evans v. McLucas, 15 S. C. 67 
(1881): McNamee & Co. v. Huckabee, 20 
S. C. 190 (1883); Levi v. Gardner, 53 S. C. 
24. 30 S. E. 617 (189S). See also. Oliver 
v. McWhirter, 112 S. C. 555, 100 S. E. 533 
(1919). 

Applied in In re Thomas, 45 F. 784 
(1891), affirmed in 55 F. 961 (1893); In re 



Tansill, 17 F. (2d) 413 (1922); First Pres- 
byterian Church of York v. York Deposi- 
tory, 203 S. C. 410, 27 S. E. (2d) 573 (1943). 

Quoted in Little v. Mangum, 17 F, (2d) 
44 (1927). 

Cited in Armour it Co. v. Ross, 78 S. C. 
294, 58 S. E. 941, 1135 (1907); Waring v. 
Miller Batting & Mfg. Co., 36 S. C. 310, 15 
S. E, 132 i 1892); Armour & Co. v. Ross. 75 
S. C. 201, 55 S. E. 315 (1906) ; Baum v. Tran- 
tham, 45 S. C. 291, 23 S. E. 54 (1895); 
Liddell Co. v. Cork, 120 S. C. 481, 113 
S. E. 327 (1922). 

II. PARTICULAR INSTRUMENTS. 
A. Mortgages. 

Unrecorded mortgage is void. — L'nder 
this section a mortgage not duly recorded 
is practically null and void, is no mortgage, 
so far as subsequent creditors or purchasers 
without notice are concerned and this is so 
without inquiry into the equities of the 
parties, but simply as a matter of express 
statutory enactment. Gregory v. Ducker, 
31 S. C. 141, 9 S. E. 780 (1889). 

When bank, which executed mortgages 
which were not recorded to secure depositor 
for abstraction of his bonds, had subse- 
quent creditors, such unrecorded mortgages 
were invalid against the said creditors. 
Bradley v. Guess, 165 S. C. 161, 163 S. E. 
466 (1932). 

And defense against such mortgages is 
legal right. — Where a party seeks to re- 
cover possession of personal property, 
claiming through a mortgage, if the de- 
fendant undertakes to defend by showing 
that he is a subsequent purchaser for valu- 
able consideration without notice, his de- 
fense does not rest upon any equitable prin- 
ciple, but upon his legal rights as declared 
by statute. Gregory v. Ducker, 31 S. C. 
141, 9 S. E. 780 (1889). 

Recordation need not be in designated 
book. — The provision of this section that 
a mortgage of real estate shall be recorded 
in the office of the register of mesne con- 
veyances docs not require such instrument 
to be recorded in any designated book. 
Armstrong v. Austin, 45 S. C. 69, 22 S. E. 
763 (1895). See also, Cox v. Enterprise 
Bank, 115 S. C. 19L 104 S. E. 693 (1920). 

Section does not apply to mortgages made 
before enactment. — Even if this section 
would apply to a verbal agreement by a 
husband that land to be afterward acquired 
should stand as security for money then 
advanced by his wife, it would not apply 
to such an agreement made before the en- 
actment of this section. Miller v. Wroton, 
82 S. C. 97, 63 S. E. 62, 449 (190S). 



99 



§60-101 



Code of Laws of South Carolina 



§60-101 



Second mortgage displaces lien of re- 
newed first mortgage for money advanced. 
— Under this section where a mortgage is 
given on real estate to secure future ad- 
vances to be made within a specified time 
and at the expiration of such time all ad- 
vances are repaid and the mortgage, by a 
secret agreement, is renewed to secure 
further advances, a second mortgage, which 
is made and duly recorded thereafter, al- 
though given to secure an antecedent in- 
debtedness, displaces the lien of the re- 
newed first mortgage for money advanced 
under the renewal. Wingo v. Caldwell, 36 
S. C. 598, 15 S. E. 382 (1892). 

Instruments which are and are not in 
the nature of a mortgage. — See Arthur v. 
Screven, 39 S. C. 77, 17 S. E. 640 (1893). 

An instrument reciting that in considera- 
tion of a certain sum advanced by another 
to the signer, "in one gray mule," the 
signer bargains and sells the mule to the 
other, which was executed at the same 
time as a note made by the signer to the 
other for the sum stated, is "an instru- 
ment in writing in the nature of a mort- 
gage," within the meaning of this section. 
Quattlebaum v. Taylor, 45 S. C. 512, 23 
S. E. 617 (1896). 

A deed with a contract to reconvey on 
the payment of a debt constitutes a mort- 
gage, or is "in the nature of a mortage," 
and is required to be recorded under this 
section. Francis v. Francis, 78 S. C. 178, 
58 S. E. 804 (1907). 

Mortgage must be sealed. — An instru- 
ment with all the requisites of a mortgage 
of land, except a seal, is not an instrument 
"in the nature of a mortgage" within the 
meaning of this section. Arthur v. Screven, 
39 S. C. 77, 17 S. E. 640 (1893). 

And must be proven before recordation 
is valid. — The fact that a written instrument 
in the nature of a mortgage was acutally 
transcribed in the records of the county 
where the land was located is of no effect 
under this section and gives no constructive 
notice where the instrument was not proven 
or acknowledged, so as to entitle it to 
recordation. Georgia Railroad Bank v. 
Koppel, 246 F. 390 (1951). 

Failure to record chattel mortgage. — See 
Wardlaw v. Trov Oil Mill, 74 S. C. 368, 
54 S. E. 658 (1906). 

Recorded chattel mortgage constitutes 
claim superior to unrecorded trust receipts. 
— One holding a chattel mortgage on auto- 
mobiles, which described them as "three 
new Chrysler automobiles at Denmark and 
Orangeburg," which was recorded in the 
county where the owner of the property 
resided, as required by this section, had a 



claim which was superior to that of a 
credit company claiming under trust receipts 
which were not recorded in the proper 
county. Garris v. Commercial Credit Co., 
149 S. C. 498, 147 S. E. 601 (1929). 

But a purchaser for value without notice 
from a purchaser in possession with notice 
is protected against an unrecorded chattel 
mortgage. London v. Youmans, 31 S. C. 
147, 9 S. E. 775 (1S89). 

For additional related cases as to mort- 
gages, see Ash v. Ash, 1 Bay (1 S. C. L.) 
304; Ashe v. Livingston, 2 Bay (2 S. C. 
L.) SO; Brailsford v. House, 1 N. & McC. 
(10 S. C. L.) 31; Ex parte Leland. 1 N. 
& McC. (10 S. C. L.) 460; Hampton v. 
Levy, 1 McC. (6 S. C. Eq.) 107; Thayer v. 
Cramer, 1 McC. (6 S. C. Eq.) 395; Nixon v. 
Bynum, 1 Bail. (17 S. C. L.) 148; Martin 
v. Sale, Bail. (8 S. C. Eq.) 1; Thaver v. 
Davidson, Bail. (8 S. C. Eq.) 412; Barn- 
well v. Porteus, 2 Hill (11 S. C. Eq.) 219; 
Smith v. Osborne, 1 Hill (10 S. C. Eq.) 
340; Schultz v. Carter, Speers (17 S. C. 
Eq.) 533; Barr v. Kinard, 3 Strob. (34 
S. C. L.) 73; Ryan v. Clanton, 3 Strob. 
(34 S. C. L.) 411; Boyce v. Boyce, 6 Rich. 
(27 S. C. Eq.) 302; Bryce v. Bowers, 
11 Rich. (32 S. C. Eq.) 41; McKnight 
v. Gordon, 13 Rich. (34 S. C. Eq.) 222; 
Williams v. Beard, 1 S. C. 309 (1870); 
Miles v. King, 5 S. C. 146 (1874); Havns- 
worth v. Bischoff, 6 S. C. 159 (1875); 
Annely v. De Saussure, 12 S. C. 488 (1879); 
Sternberger v. McSween, 14 S. C. 35 
(1880); King v. Fraser, 23 S. C. 543 
(1885); Blohme v. Lvnch, 26 S. C. 300, 
t S. E. 136 (18S7); South Carolina Loan 
& Trust Co. v. McPherson, 26 S. C. 431, 
2 S. E. 267 (1886): McGowan v. Reid, 27 
S. C. 262, 3 S. E. 337 (1887); Carraway v. 
Carraway, 27 S. C. 576, 5 S. E. 157 (1888); 
Bredenberg v. Landrum, 32 S. C. 215, 10 
S. E. 956 (1890); Norwood v. Norwood, 
36 S. C. 331, 15 S. E. 382 (1889). 

B. Bond for Title. 

Bond for title must be recorded. — Under 
the laws of this State, a bond for title is 
not a mere "chose in action," but conveys 
a substantial interest in the land and this 
section requires an assignment of a bond 
for title, given by one who subsequently 
became a bankrupt to secure a debt, to be 
recorded. In re Rosenthal, 238 F. 597 
(1916). See also, Georgia Railroad Bank 
v. Koppel, 246 F. 390 (1917). 

C. Contracts. 

Executory contract for sale of land must 
be recorded. — An executory contract for the 



100 



§60-101 



Registration and Recordation 



§60-101 



sale of land was held to constitute a deed of 
conveyance as contemplated by this section, 
requiring such instruments to be recorded, 
since such contract conveys or transfers 
an interest in real estate which may be 
mortgaged by vendee, and is devisable and 
descendible, and may be assigned or become 
subject to mechanic's lien. Epps v. AlcCal- 
lum Realty Co., 139 S. C. 481, 138 S. E. 
297 (1927). 

And if such executory contract is not 
recorded possession will not operate as con- 
structive notice thereof. Van Ness v. 
Schachte. 143 S. C. 429, 141 S. E. 721 
( 1928). 

Likewise bailment contract must be re- 
corded. — A contract between a tire manu- 
facturer and an automobile dealer, pursu- 
ant to which tires belonging to the manu- 
facturer were stored with the dealer who 
made shipments from time to time on the 
manufacturer's orders and sold at retail 
tires which were later charged to him, was 
held a contract of bailment void as to sub- 
sequent creditors unless recorded as re- 
quired by § 57-308 construed with this 
section. Firestone Tire & Rubber Co. v. 
Cross, 17 F. (2d) 417 (1927). 

D. Marriage Settlements. 

Settlements in consideration of marriage 
must be recorded. — Only settlements in 
consideration of marriage and before, or in 
pursuance of agreement made before, are 
required to be recorded as such. Bank of 
United States v. Brown, 2 Hill (11 S. C. 
Eq.) 558; Napier v. Wrightman, Speers 
(17 S. C. Eq.) 357; LePrince v. Guillemot, 
1 Rich. (18 S. C. Eq.) 187; Amaker v. 
New, 33 S. C. 28, 11 S. E. 3S6 (1890); 
Trustees v. Bryson, 34 S. C. 401, 13 
S. E. 619 (1891). 

A mere executory agreement is not a 
marriage settlement. Baskins v. Giles, Rice 
(14 S. C. Eq.) 315. 

Unrecorded marriage settlements are 
void as to creditors concerned. Hanion 
v. McCall, Harp. (5 S. C. Eq.) 170; La- 
Borde v. Penn, McM. (16 S. C. Eq.) 448; 
Fowke v. Woodward, Speers (17 S. C. Eq.) 
233; Brock v. Bowman, 10 Rich. (31 S. C. 
Eq.) 185; Harper v. Barsh, 10 Rich. (31 
S. C. Eq.) 149; Barsh v. Riols, 6 Rich. (40 
S. C. L.) 162. 

Settlement upon a married woman by the 
court need not be recorded as a marriage 
settlement. McMeekin v. Edmonds, 1 Hill 
(10 S. C. Eq.) 288. 

Nor need settlement upon her by hus- 
band after marriage for present considera- 
tion be recorded as such. Bank of United 
States v. Brown, 2 Hill (11 S. C. Eq.) 558. 



III. NOTICE. 

Notice under this section is a legal issue. 
—Armour & Co. v. Ross, 75 S. C. 201, 
55 S. E. 315 (1906); Charleston Live Stock 
Co. v. Collins, 79 S. C. 383, 60 S. E. 944 
(1908). 

And either actual or constructive notice 
will prevent the plea of bona fide pur- 
chaser for value without notice. Epps v. 
McCallum Realty Co., 139 S. C. 481, 138 
S. E. 297 (1927). 

Furthermore the possession of a pur- 
chaser under a parol agreement is notice 
of his right, and such rule is not changed 
by this section. Farr v. Sprouse, 133 S. C. 
93, 130 S. E. 210 (1925). 

But notice of real estate sales is given 
only by actual record, and mere possession 
of the land is insufficient to charge subse- 
quent purchasers with notice. Savannah 
Timber Co. v. Deer Island Lumber Co., 
258 F. 777 (1918), cert, denied 250 U. S. 647, 
39 S. Ct. 495, 63 L. Ed. 1187 (1919). 

Recordation operates as constructive no- 
tice. — If the paper under consideration can 
be regarded as an instrument in writing in 
the nature of a mortgage and it was duly 
recorded, the language of the section implies 
very strongly, if not necessarily, that rec- 
ordation would operate as constructive 
notice. Arthur v. Screven, 39 S. C. 77, 
17 S. E. 640 (1893). See also, Francis v. 
Francis, 78 S. C. 178, 58 S. E. 804 (1907); 
Bravton v. Beall, 73 S. C. 308, 53 S. E. 
64 (1906). 

And recorded purchase money mortgage 
is notice. — Where a purchase money mort- 
gage is properly recorded as required by 
this section, it operates as constructive 
notice to subsequent purchasers though the 
deed to the mortgagor was not recorded. 
Van Diviere v. Mitchell, 45 S. C. 127, 22 
S. E. 759 (1895). 

For additional related cases, as to when 
record of mortgage is not notice of terms 
of bond, see Equitable Bldg. & Loan Ass'n 
v. Corley, 72 S. C. 404, 52 S. E. 48 (1905): 
Miller v. Wroton, 82 S. C. 97, 63 S. F. 62. 
449 (1908); as to the effect of recordation 
of mortgage and assignment as notice, see 
Fx parte Anderson, 82 S. C. 131, 62 S. E. 
513, 63 S. E. 354 (1909); concerning rec- 
ordation as notice, see National Bank v. 
Livingston, 155 S. C. 264, 152 S. E. 410 
(1930); as tc innocent purchaser without 
notice, see Williams v. Jones, 74 S. C. 258, 
54 S. E. 55S (1906) ; as to possession as 
notice under former statute, see Sheorn v. 
Robinson, 22 S. C. 32 (1884). 



101 



UNIVERSITY OF SOUTH CAROLINA 
SCHOOL OF LAW LIBRARY 



§ 60-102 Code of Laws of South Carolina § 60-103 

IV. PRIORITIES. cording of a chattel mortgage on cotton 

A mortgage recorded out of time is held nineteen martin after its execution, the 

to take effect from that date as respects pri- mortgaged cotton was placed in a ware- 

orities. In re Syleecau Mfg. Co., 17 F. house of another creditor of the mortgagor 



(2d) 503 (1922). 



and pledged to the payment of a past-due 



All claims of antecedent creditors are ex- " ot _?• !t , wa f he,d under thls sectlon tha * l ie 

tinguished by mortgage and, as between pledgee s llen wai > superior to that of the 

mortgagee and subsequent creditors, rights mortgagee, notwithstanding § 57-oOS, which 

of latter must prevail. In re Cannon, 121 f eI . ates . t0 , rec . ordln K of hen; that sect.on 

F. 582 (1903); In re Claussen & Co., 164 ^'"f !" tl,e mterest of ^bailor, not of 



F. 300 (1908), affirmed in 174 F. 654 (1909) 



the bailee, and also exempting deposit of 



And mortgagee is not entitled" to share » roper % aS a P ' edse or collateral to a loan 



with subsequent creditors who have ac- 



from the operation of the section. Tucker 



quired rrglts ly morse's" failure* to » ^jg"*^ U2 S ' C ^ U9 S " E ' ?? 

cord mortgage. Simmons v. Greer, 174 F. *■ " '" 

654 (1909). For additional related cases as to priori- 

The lien of a recorded mortgage is prior ties, see Armstrong v. Carwile, 56 S. C. 463, 

to that of a mechanic for repairs subse- 35 S. E. 196 (1900): Summers v. Brice, 36 

quently made. Nesbitt Auto Co. v. Whit- S. C. 204. 15 S. E. 374 (1892) ; In re 

lock, 113 S. C. 519, 101 S. E. 822 (1920). American Slicing Mach. Co., 125 S. C. 214, 

Pledgee's lien superior to unrecorded 118 S. E. 303 (1923); Williamson v. Hotel 

chattel mortgage.— Where, before the re- Melrose, 110 S. C. 1, 96 S. E. 407 (1918). 

§ 60-102. Where recordation of such instruments affecting real property made; 
requirements for such recordation. 

The recordation of any contract in the nature of a subordination, waiver 
or extension of any lien on real property, created by law or by agreement of 
the parties, shall be upon the record of the recorded mortgage or other writ- 
ten instrument except that it may be recorded elsewhere, if in the book 
for the recording of mortgages there should be no place upon the record of 
the recorded mortgage or other written instrument sufficient for the recorda- 
tion of such contract in the nature of a subordination, waiver or extension, in 
which event there shall be entered on the margin of the recorded mortgage 
or other written instrument in regard to which such contract in the nature of a 
subordination, waiver or extension has been thus recorded elsewhere an ap- 
propriate reference to such recordation, giving the names of the parties there- 
to and the date and the book and page where such instrument is recorded. 
Any contract in the nature of a subordination, waiver or extension of any 
lien on real property created by law or by agreement of the parties, to be 
entitled to be recorded as herein provided shall be in writing and witnessed 
as mortgages of real property are required to be witnessed and not probated 
when it is upon the original mortgage or other instrument itself, but when 
it is upon a separate piece then it shall be probated in the same manner as 
is provided by law for the probating of mortgages of real property. 

1942 Code §8875-1; 1934 (38) 1518. 

§ 60-103. Release or satisfaction of lien on real estate good against unrecorded 
assignment, etc. 
A release or satisfaction of the lien of any mortgage or other written in- 
strument affecting title to real property as security for the payment of money, 
made or entered into by the original mortgagee, trustee or his legal repre- 

102 



§ 60-104 Registration and Recordation § 60-106 

sentative, or any assignee under an assignment recorded as provided in § ''0-104 
shall be good and effectual, both in law and in equity, for the protection of 
any subsequent purchaser for a valuable consideration of the property affected 
by such mortgage or other written instrument, or subsequent creditor ob- 
taining a lien upon such property, notwithstanding any assignment or trans- 
fer of such mortgage or other written instrument or of the obligation se- 
cured thereby, unless such assignment or transfer shall have been recorded 
as provided in § 60-104 or such purchaser or creditor shall have had actual 
notice thereof before such purchaser or lien creditor acquired any interest in 
or claim upon the real estate so encumbered. 

1942 Code §8881; 1932 Code §8881; 1924 (33) 928; 1926 (34) 982; 1933 (38) 525. 

§ 60-104. Recordation of assignment. 

The recordation of such an assignment or transfer as is mentioned in 
§ 60-103 shall, to be effective under said section, be upon the record of the re- 
corded mortgage or other written instrument, except that it may be recorded 
elsewhere in the book for the recording of mortgages should there be no 
place upon the record of the recorded mortgage or other written instrument 
sufficient for the recordation of such assignment, in which event there shall 
be entered on the margin of the recorded mortgage or other written instru- 
ment whose assignment has been thus recorded elsewhere an appropriate 
reference to such recordation, giving the name of the assignee, the date of 
the assignment and the book and page where recorded. 

1942 Code §8881; 1932 Code §8881; 1924 (33) 928; 1926 (34) 982; 1933 (38) 525. 

§ 60-105. Execution and probate of assignment. 

Any assignment to be entitled to be recorded as provided in § 60-104 shall be 
in writing and witnessed as mortgages of real property are required to be 
witnessed and shall not be probated when it is upon, or attached to, the 
original mortgage itself, but when it is upon a separate piece not attached to 
the original mortgage itself then it shall be probated in the same way as is 
now provided by law for the probating of mortgages of real property. 

1942 Code §88S1; 1932 Code §8881; 1924 (33) 928; 1926 (34) 982; 1933 (38) 525. 

Assignments attached to mortgage are papers to the back of same mortgage, the 

in compliance. — Where one assignment of court held that this was a compliance with 

a mortgage was on a sheet of paper which the provision of this section providing to 

was glued to the original mortgage, and the effect that assignments need not be pro- 

another assignment was on a sheet of paper bated "where the same is upon the original 

pinned and clamped with pins similar to mortgage itself." Long Realty Co. v. 

that used in clamping and pinning legal Breedin, 175 S. C. 233, 179 S. E. 47 (1935). 

§ 60-106. Assignment, release, etc., of liens. 

Assignments, satisfactions, releases and contracts in the nature of subordi- 
nations, waivers and extensions of landlords' lien, laborers' liens, share- 
croppers' liens and other liens on personal property, created by law or by 
agreement of the parties, except assignments and satisfactions of conditional 
sale contracts securing the purchase money of motor vehicles and refrigerators, 
contracts in the nature of subordinations, waivers and extensions of liens on 

103 



§ 60-107 Code of Laws of South Carolina § 60-108 

real property, created by law or by agreement of the parties, made or entered 
into by the original mortgagee, lien creditor or trustee, or his legal repre- 
sentative or any assignee under an assignment recorded as herein or other- 
wise provided, shall be good and effectual, both in law and in equity, for the 
protection of any subseqeunt purchaser for a valuable consideration of the 
property affected by such mortgage or other instrument or lien created by 
law or any subsequent creditor obtaining a lien upon such property, notwith- 
standing any other assignment, transfer, satisfaction, release, subordination, 
waiver or extension contract of such mortgage or other lien, or the obligation 
secured thereby, unless such other assignment, satisfaction, release, sub- 
ordination, waiver or extension contract of such mortgage or other lien or 
of the obligation secured thereby, shall have been recorded as herein or 
otherwise provided or such purchaser or creditor shall have had actual no- 
tice thereof before such purchaser or lien creditor acquired any interest in or 
lien upon the property so encumbered. 
1942 Code §8875-1; 1934 (38) 1518. 

§ 60-107. Where such instruments recorded. 

The recordation of such assignments, satisfactions, releases, contracts in the 
nature of subordinations, waivers and extensions of landlords' liens, laborers' 
liens, sharecroppers' liens, and of all other liens on personal property, cre- 
ated by law, shall be recorded and indexed in the books in which chattel 
mortgages are required by law to be indexed and recorded and shall be wit- 
nessed and probated in the manner required for the execution of chattel 
mortgages. 

1942 Code §8875-1; 1934 (38) 1518. 

§60-108. How recordation of such instruments made; requirements for such 
recordation. 
The recordation of such assignments, satisfactions, releases, contracts in 
the nature of subordinations, waivers and extensions of chattel mortgages or 
other instruments conveying an interest in or creating a lien on personal prop- 
erty shall be upon the record of the recorded mortgage or other written in- 
strument, except that such an instrument may be recorded elsewhere in the 
book for the recordation of mortgages should there be no place upon the 
record of the recorded mortgage or other written instrument sufficient for 
the recordation of such assignment, satisfaction, release, contract in the nature 
of subordination, waiver or extension of the lien, in which event there shall 
be entered on the margin of the recorded mortgage or other written instru- 
ment whose assignment, satisfaction, release, contract in the nature of sub- 
ordination, waiver or extension has been thus recorded elsewhere an appro- 
priate reference to such recordation, giving the names of the parties thereto, 
the date and the book and page where such instrument is recorded. Any 
assignment, satisfaction, release, contract in the nature of subordination, 
waiver or extension of a chattel mortgage or other instrument conveying 
an interest in or creating a lien on personal property to be entitled to be 

104 



§ 60-109 



Registration and Recordation 



§60-109 



recorded as herein provided shall he in writing and witnessed as mortgages 
of personal property arc required to he witnessed and not prohaled when 
it is upon the original mortgage or other instrument itself, hut when it is 
upon a separate piece then it shall he prohated in the same way as is required 
for the probating of mortgages of personal property. 
1942 Code §8875-1; 1934 (38) 1518. 



§ 60-109. What constitutes notice of unrecorded instrument. 

No possession of real property described in any instrument of writing re- 
quired by law to be recorded shall operate as notice of such instrument. Ac- 
tual notice shall be deemed and held sufficient to supply the place of registra- 
tion only when such notice is of the instrument itself or of its nature and 
purport. 

1942 Code §8882; 1932 Code §8882; Civ. C. '22 §5313; Civ. C. '12 §3543; Civ. C. '02 
§2457; R. S. 1969; 1888 (20) 15. 



Record or notice of instrument itself is 
required. — Notice of real estate sales is 
given only by actual record, and mere pos- 
session of land is insufficient to charge 
subsequent purchasers with notice, unless 
actual notice can be proved of the deed or 
instrument. Savannah Timber Co. v. Deer 
Island Lumber Co., 258 F. 777 (1918), cert, 
denied 250 U. S. 647, 39 S. Ct. 495, 63 
L. ed. 1187 (1919). 

But section does not apply to possession 
under a parol contract for the sale of land, 
and such possession is notice of the equity 
of the party in possession. Folk v. Brooks, 
91 S. C. 7, 74 S. E. 46 (1912). 

Nor does it affect the rule that possession 
by a grantor in a deed which was in fact a 
mortgage is notice to a subsequent purchas- 
er of the rights of such grantor. Bell v. 
Edwards, 78 S. C. 490, 59 S. E. 535 (1907). 

Burden of proof. — A plaintiff claiming 
land under a marriage settlement deed has 
the burden of proving that his deed had 
either been recorded or that defendant, 
claiming as an innocent purchaser for value, 
had actual notice of the nature and purport 
of the deed. Movie v. Campbell, 126 S. C. 
ISO, 119 S. E. 186 (1923). 

The law imputes to a purchaser of realty 
notice of the recitals in the instruments 
forming his chain of title. Movie v. Camp- 
bell, 126 S. C. 180, 119 S. E. 186 (1923). 
See also, National Bank v. Livingston, 155 
S. C. 264, 152 S. E. 410 (1930). 

And notice of circumstances sufficient to 
put one on inquiry will deprive one of pro- 
tection of innocent purchaser. — A purchas- 
er of land, possession of which is held under 
an unrecorded deed, is not entitled to the 
protection of innocent purchaser if he had 
notice of such circumstances as were suffi- 
cient to put him on inquiry, which, if pur- 



sued with due diligence, would have led 
to knowledge of the rights of those holding 
possession under the unrecorded deed. 
Oliver v. McWhirter, 112 S. C. 555, 100 
S. E. 533 (1919). 

Void deed does not affect bona fide pur- 
chaser's rights. — Notice of a father's deed 
to his sons which was void for want of 
delivery could not affect the rights of a 
subsequent bona fide purchaser in view of 
this section. Powers v. Rawls, 119 S. C. 
134, 112 S. E. 78 (1922). 

And refusal of charge to this effect is 
error. — The refusal to charge that notice of 
the undelivered deed could not affect the 
rights of a subsequent purchaser for value 
was held error. Powers v. Rawls, 119 S. 
C. 134. 112 S. E. 7S (1922). 

For additional related cases, as to notice 
to supplv lack of registration, see Tart v. 
Crawford, 1 McC. (12 S. C. L.) 265; Tart 
v. Crawford, 1 McC. (12 S. C. L.) 479; 
Givens v. Brandford, 2 McC. (13 S. C. L.) 
152; Cabiness v. Mahon, 2 McC. (7 S. C. 
Eq.) 273; McFall v. Sherrard, Harp. (16 
S. C. L.) 295; Anderson v. Harris, 1 Bail. 
(17 S. C. L.) 315; Kottman v. Aver, 1 
Strob. (32 S. C. L.) 552; Martin v. Sale. 
Bail. (8 S. C. Eq.) 1; Page v. Street, Speers 
(17 S. C. Eq.) 159; Fowke v. Woodward, 
Speers (17 S. C. Eq.) 233; Cooper v. Dav, 
1 Rich. (18 S. C. Eq.) 26; Wallace v. Craps. 
3 Strob. (34 S. C. L.) 266; Ingrem v. 
Phillips, 3 Strob. (34 S. C. L.) 565; Cape 
Fear Steamboat Co. v. Conner, 3 Rich. (37 
S. C. L.) 335; Knotts v. Geiger. 4 Rich. 
(38 S. C. L.) 32: Anderson v. Aiken. 11 
Rich. (32 S. C. Eq.) 232; Aultman v. Ut- 
sey, 34 S. C. 559, 13 S. E. 848 (1891); as to 
possession as notice, before this section, 
see Sheorn v. Robinson, 22 S. C. 32 (18S4); 
Biemann v. White, 23 S. C. 490 (1885); 



105 



§60-151 



Code of Laws of South Carolina 



§60-153 



Graham v. Nesmith, 24 S. C. 285 (1S86); 
Sweatman v. Edmunds, 28 S. C. 58, 5 S. E. 
165 (1888); Daniel v. Hester, 29 S. C. 147, 
7 S. E. 65 (1888); as to notice to agent 
of corporation, see Wardlaw v. Troy Oil 
Mill, 74 S. C. 368, 54 S. E. 658 (1906); as 
to notice that absolute deed was intended 
as a mortgage, see Manigualt v. Lofton, 78 
S. C. 499, 59 S. E. 534 (1907); concerning 
an unrecorded deed by remainderman to 
grantee in possession, see Wagener & Co. 



v. Brown Bros., 82 S. C. 131, 62 S. E. 513, 
63 S. E. 354 (1909). 

Applied in Richardson v. Ellis, 112 S. C. 
108, 98 S. E. 846 (1919) ; Foster v. Bailey, 82 
S. C. 378, 64 S. E. 423 (1909). 

Quoted in Beck v. Northwestern Ry. Co., 
99 S. C. 310, 83 S. E. 335 (1914), dis. op. of 
Fraser, J. 

Cited in Williamson v. Hotel Melrose, 110 
S. C. 1, 96 S. E. 407 (1918). 



CHAPTER 4. 
Indexing and Filing. 



Sec. 

60-151. Indexes to books of registry. 

60-152. Separate indexes for each set of 
books. 

60-153. Filing of written instruments gen- 
erally. 

60-154. Special provision for certain coun- 
ties. 

60-155. Same; certain counties excepted. 

60-156. Indexing required for certain in- 
struments and effect thereof. 



Sec. 

60-157. Indexing of deeds of certain officers. 

60-158. Indexing of passage of title by will 
or inheritance. 

60-159. Indexing not notice. 

60-160. Fees. 

60-161. Indexes to deeds and conveyances 
in Marlboro County; notice; pay- 
ment of clerk's fees. 



§ 60-151. Indexes to books of registry. 

To the books of the registry, reference shall be had by means of two in- 
dexes, each of which shall be in a separate book of the size denominated "Long 
Cap," both containing the year of registry, names of parties, book and page, 
the alphabetical arrangement of one being according to the names of the 
parties who executed the writings and of the other according to the names 
of the parties to whom they were executed, each index embracing a number 
of the volumes of registry not less than ten. 

1942 Code §3635; 1932 Code §3635; Civ. C. '22 §2179; Civ. C. '12 § 1355; Civ. C. '02 
§950; G. S. 769; R. S. 820; 1839 (11) 115; 1928 (35) 1185. 

§ 60-152. Separate indexes for each set of books. 

The clerks and registers of mesne conveyances of the several counties shall 

provide separate indexes for the different sets of books provided for them. 

1942 Code §3635; 1932 Code §3635; Civ. C. '22 §2179; Civ. C. '12 § 1355; Civ. C. '02 
§950; G. S. 769; R. S. 820; 1839 (11) 115; 1928 (35) 1185. 



§ 60-153. Filing of written instruments generally. 

Each clerk of court and register of mesne conveyances in this State shall 
keep a file book in his office in which he shall file all conveyances, mortgages, 
liens, contracts and papers relating to real and personal property, by enter- 
ing therein the names of the grantor and grantee, mortgagor and mortgagee, 
obligor and obligee, date of filing and nature of the instrument immediately 

106 



§ 60-154 Registration and Recordation § 60-156 

upon its lodgment for record. Such filing shall be notice to all persons, suf- 
ficient to put them upon inquiry of the purport of the instrument so filed 
and the property affected thereby. 

1942 Code § 8889; 1932 Code § 8889; Civ. C. '22 § 5320; Civ. C. '12 § 3550; 1911 (27) 152; 
1912 (27) 564; 1914 (28) 511; 1916 (29) 781; 1926 (34) 1725. 

As to application of this section in con- Cited in Witt v. Leysath, 160 S. C. 251, 

nection with §§60-101 and 60-156, see Lid- 158 S. E. 226 (1931). ' 
dell Co. v. Cork, 120 S. C. 481, 113 S. E. 
327 (1922). 

§ 60-154. Special provision for certain counties. 

In the counties of Charleston, Richland, Saluda and Sumter it shall be a suffi- 
cient compliance with § 60-153 for the recording officer to enter any of such 
papers upon the regular index book and such entry shall constitute notice as 
aforesaid. 

1942 Code § 8889; 1932 Code § 8889; Civ. C. '22 § 5320; Civ. C. '12 § 3550; 1911 (27) 152; 
1912 (27) 564; 1914 (28) 511; 1916 (29) 781; 1926 (34) 1725. 

« 

§60-155. Same; certain counties excepted. 

The provisions of § 60-153 shall not apply to the counties of Chesterfield, 

Clarendon, Lancaster, Lee and Lexington. 

1942 Code § 8889; 1932 Code § 8889; Civ. C. '22 § 5320; Civ. C. '12 § 3550; 1911 (27) 152; 
1912 (27) 564; 1914 (28) 511; 1916 (29) 781; 1926 (34) 1725. 

§ 60-156. Indexing required for certain instruments and effect thereof. 

The register of mesne conveyances or clerk of court in those counties where 
the office of the register of mesne conveyances has been abolished shall im- 
mediately upon the filing for record of any deed, mortgage or other written 
instrument of the character mentioned in § 60-101 enter it upon the proper 
indexes in his office, which shall constitute an integral, necessary and insep- 
arable part of the recordation of such deed, mortgage or other written in- 
strument for any and all purposes whatsoever and this shall likewise apply 
to any copy of the indexes made subsequently by the register of mesne con- 
veyances or clerk of court or the deputy of either thereof or by his authority 
for the purpose of replacing the original indexes. The entries in the indexes 
hereby required to be made shall be notice to all persons sufficient to put them 
upon inquiry as to the purport and effect of the deed, mortgage or other writ- 
ten instrument so filed for record, but the recordation of a deed, mortgage 
or other written instrument shall not be notice as to the purport and effect 
thereof unless the filing of the instrument for record be entered as required 
hereby in the indexes. 

1942 Code §8875; 1932 Code §8875; Civ. C. '22 §5312; Civ. C. '12 §3542; Civ. C. '02 
§2456; G. S. 1776; R. S. 1968; 1879 (16) 92; 1898 (22) 746; 1909 (26) 190; 1914 (28) 482; 
1925 (34) 85; 1927 (35) 72; 1934 (38) 1521; 1936 (39) 1387. 

Imperfect indexing of deed does not im- C. 69, 22 S. E. 763 (1895) ; Greenwood Loan 

pair rights of those holding under it. & Guarantee Ass'n v. Childs, 67 S. C. 251, 

Mitchell v. Cleveland, 76 S. C. 432. 57 S. 45 S. E. 167 (1903). I 

E. 33 (1907); Armstrong v. Austin, 45 S. 

107 



§ 60-157 Code of Laws of South Carolina § 60-160 

§ 60-157. Indexing of deeds of certain officers. 

Whenever any clerk of court or register of mesne conveyances in coun- 
ties having such office, tax collector or sheriff shall make any conveyance of, 
or deed to, real estate, whether pursuant to any order or decree of any court 
of competent jurisdiction, to a tax sale, to any levy, execution and sale 
for the satisfaction of a judgment or to any sale pursuant to a partition agree- 
ment or ordered by devise or last will, such sale shall be indexed in the office 
of the clerk of court or register of mesne conveyances in the county in which 
the real estate is situate, not only in the name of the sheriff, clerk of court, 
register of mesne conveyances, or tax collector, making such conveyance, but 
in the name of the last title holder. The officer named shall advise the clerk of 
court or register of mesne conveyances of the name of the last title holder 
and the clerk of court or register of mesne conveyances shall index such con- 
veyance in accordance with the provisions hereof. 

1948 (45) 1971. 

§ 60-158. Indexing of passage of title by will or inheritance. 

Whenever any will, properly proven, shall be filed in the office of any pro- 
bate court of any county of this State or any estate be properly filed for ad- 
ministration under the supervision of any probate court of this State and such 
will shall devise real property to a named individual, or in any case under the 
administration of the probate court when the heirs-at-law are, in the judgment 
of the probate judge, definite and certain, the probate judge, before discharg- 
ing the administration of the estate or the administrator c. t. a. of the estate 
or the executor or executrix under the will or under court order, shall tender 
to the clerk of court or office of register of mesne conveyances in counties 
having such office, in writing, a statement showing the name of the deceased 
owner as grantor and the name of the devisee, heir-at-law or heirs-at-law as 
grantee or grantees and the clerk or register shall index them as if the transfer 
of property had been made by deed. The clerk of court or register of mesne 
conveyances shall charge the judge of probate the index fee as herein pre- 
scribed and the judge of probate shall charge the index fee as a cost of the 
estate. In indexing the transfer the clerk of court or register of mesne con- 
veyances shall designate the file, book and page number or package number 
of the probate court in which the administration of the estate is filed. 

1948 (45) 1971. 

§60-159. Indexing not notice. 

The indexing required by §§ 60-157 and 60-158 shall not constitute notice 
under the statutes of this State relating to the recording of instruments. But 
nothing herein contained shall impair or affect the notice of the record of the 
original instruments as otherwise provided by law. 

1948 (45) 1971. 

§60-160. Fees. 

For any indexing or notation under §§ 60-157 or 60-158 the clerk or register 
shall charge a fee of twenty-five cents for each paper indexed in the office 

10S 



§60-161 Registration and Recordation §60-201 

of the clerk of court or register of mesne conveyances and the judge of probate 
shall charge a fee of twenty-five cents for each indexing in accordance with the 
provisions of said sections. 
1948 (45) 1971. 

§ 60-161. Indexes to deeds and conveyances in Marlboro County; notice; pay- 
ment of clerk's fees. 

The indexes to deeds and conveyances arranged and prepared under con- 
tract with the clerk of court of Marlboro County as authorized by this body 
and covering the years 1786 to about September 1 1929 are approved and are 
hereby declared to be the indexes thereto required by law and full faith 
and credit may be given to them as accurate indexes. The clerks of court of 
said county shall hereafter continue the use of indexes to deeds and mort- 
gages -substantially similar in form and contents to those above mentioned. 

The clerk may require as a condition to his accepting any instrument for 
record the payment of the recording fee in advance. 

1942 Code §4636; 1932 Code §4636; 1930 (36) 1267. 



CHAPTER 5. 
Plats, Blue Prints, Photostatic Copies, etc. 

Sec. Sec. 

60-201. Use of photostatic or other photo- 60-205. Same; special requirements for 

graphic method of recording in Charleston County. 

county with city over seventy 60-206. Same; special provision for Sumter 

thousand. County. 

60-202. Same; in counties with city over 60-207. Required recording of plats or blue 

sixty thousand. prints of subdivisions. 

60-203. Blank. 60-208. Effect of reference to such record- 

60-204. Recordation of plats or copies ed plats, etc. 

thereof. 60-209. Validation of previous recordings 

of plats. 

§ 60-201. Use of photostatic or other photographic method of recording in 
county with city over seventy thousand. 
In all counties in this State containing a city having a population of more 
than seventy thousand according to the official United States census in which 
the governing body of the county by resolution shall so provide and in which 
such governing body shall procure and furnish the necessary equipment there- 
for, the register of mesne conveyances shall record all instruments lodged for 
record, except deeds and mortgages of real estate, and may record all deeds 
and mortgages of real estate, by making two copies of them by photostatic or 
other photographic method of copying, one copy to be bound in an appropriate 
loose leaf record book complying with the requirements of § 1-57 and kept in 
a safe place in the office of the recording officer as a master copy and the other 
copy to be bound in a similar record book and made available for public use 

109 



§ 60-202 Code of Laws of South Carolina § 60-207 

and inspection at all times. Such recording shall have all of the legal incidents 
and effect otherwise provided by the recording laws of this State. 
1942 (42) 1627. 

§ 60-202. Same ; in counties with city over sixty thousand. 

Photostatic copies or photo recording copies, duly authenticated by the 
signature of the clerk of court or other proper official charged with the duty 
of recording legal papers, of any county in this State containing a city having 
a population of over sixty thousand according to the last official United States 
census shall be sufficient compliance with the law with reference to the record- 
ing of all legal papers in any such county. 

1946 (44) 1525. 

§ 60-203. Blank. 

§ 60-204. Recordation of plats or copies thereof. 

It shall be lawful for the owner of any real property or any interest therein 
or for any holder of a lien thereon to have a plat thereof, or a blue print, 
tracing, photostatic or other copy of a plat thereof recorded in the office of 
the register of mesne conveyances or in the office of the clerk of court in those 
counties in which the office of register of mesne conveyances does not exist, 
of the county in which such property, or any part thereof, is situated. When 
any such plat or, blue print, tracing, photostatic or other copy of such plat is 
affixed or filed in the book provided by any such officer for that purpose and 
duly indexed it shall be deemed a recording thereof. 

1942 Code §8875-3; 1934 (38) 1503; 1936 (39) 1345, 1589. 

§ 60-205. Same; special requirements for Charleston County. 

In Charleston County no plats shall be recorded in the office of register of 
mesne conveyance unless a true copy on tracing cloth shall be furnished at the 
time of recording and a filing fee of one dollar shall first be paid, all such 
fees to be paid over by the register of mesne conveyance to the county treas- 
urer of Charleston County in due course. 

1942 Code §8875-3; 1934 (38) 1503; 1936 (39) 1345, 1589. 

§ 60-206. Same ; special provision for Sumter County. 

No plat, drawing or section of, or amendment to, any such plat or drawing 
shall be accepted by the clerk of court of Sumter County for record which ex- 
ceeds in dimensions the width of seventeen inches or the length of twenty- 
one inches or which does not bear the name of the draftsman and the town- 
ship. But the provisions of this section shall not apply to ancient plats. 

1947 (45) 315. 

§ 60-207. Required recording of plats or blue prints of subdivisions. 

When real property is subdivided for the purpose of sale and is sold or 
offered for sale according to a plat of a survey thereof, the person first offering 
such property for sale shall file a plat or blue print of such survey in the 

110 



§ 60-208 Registration and Recordation § 60-209 

office of the clerk of court of the county in which such renl estate is situate. 
In the event that the owner fails to comply with the above provision he shall 
become liable to the purchaser or to any subsequent grantee of the land, 
or of any portion thereof, in such sum as shall be found necessary to procure 
and record such plat. Such sum shall be recovered by any such grantee pro- 
vided he be interested as owner of all or a portion of the subdivided property 
at the time of the institution of the action for the enforcement of the liability 
hereby created. 

1942 Code § 8875-4; 1936 (39) 1473. 

§ 60-208. Effect of reference to such recorded plats, etc. 

When any recorded deed, mortgage or other instrument conveying an in- 
terest in, or creating a lien on, real property, refers to the boundaries, metes, 
courses or distances of such real estate delineated or shown on any such plat 
or blue print, tracing, photostatic or other copy of such plat, recorded and in- 
dexed as herein authorized, and such deed, mortgage or other instrument states 
the office, book and page of recordation of any such plat or blue print, tracing, 
photostatic or other copy thereof, such reference shall be equivalent to setting 
forth in extenso in such deed, mortgage or other instrument the boundaries, 
metes, courses or distances of such real estate as may be delineated or shown 
on any such plat or blue print, tracing, photostatic or other copy thereof. 

1942 Code §8875-3; 1934 (38) 1503; 1936 (39) 1345, 1589. 

§ 60-209. Validation of previous recordings of plats. 

Any and all such plats or blue print, tracing, photostatic or other such 
copies of such plats heretofore affixed or filed in the manner provided in § 60- 
204 and duly indexed are declared to have been duly filed and recorded. The 
reference in any deed, mortgage or other instrument heretofore recorded to the 
boundaries, metes, courses or distances of such real estate as may be delineated 
or shown on any such plat or blue print, tracing, photostatic or other copy 
thereof, heretofore affixed and filed in the manner provided in § 60-204 and 
duly indexed, shall have the same effect as if the boundaries, metes, courses 
or distances of such real estate were set forth in extenso in such deed, mort- 
gage or other instrument. 

1942 Code §8875-3; 1934 (38) 1503; 1936 (39) 1345, 1589. 



CHAPTER 6. 

Deeds of Railroads. 

Sec. Sec. 

60-251. Recordation of deeds, etc., of rail- 60-254. Filing and fee therefor. 

roads. 60-255. Effect of certified copy of such re- 

60-252. Same; mortgages and deeds of corded instrument. 

trust. 60-255.1. Satisfaction of such instruments. 

60-253. Proof of execution of such instru- 60-256. Recordation of certain instruments 

ments. validated. 

Ill 



§60-251 Code of Laws of South Carolina §60-252 

§ 60-251. Recordation of deeds, etc., of railroads. 

All deeds of conveyance of railroad beds, tracks and rights of wav, cars, lo- 
comotive engines, rolling stock and other railway equipment, all leases and 
conditional sales of, and all other instruments in writing relating to, such 
property in this State, other than mortgages and deeds of trust, delivered or 
executed on or after January 1 1894 shall be valid, so as to affect from the 
time of such delivery or execution the rights of subsequent creditors or pur- 
chasers for valuable consideration without notice, only when filed in duplicate 
within forty days from the execution and delivery thereof in the office of the 
Secretary of State. But the above mentioned deeds, leases, mortgages and 
other conditional sales and instruments in writing, if filed subsequent to the 
expiration of such period of forty days, shall be valid to affect the rights of 
subsequent creditors and purchasers for valuable consideration without no- 
tice from the date of such record only, one of the copies of any such instrument 
so filed shall be given its proper file number, indexed and retained in the 
office of the Secretary of State and the other shall be properly endorsed, giving 
the file number under which it is to be found and returned. 

1942 Code §§3106, 3107; 1932 Code §§3106, 3107; Civ. C. '22 §§789, 790; Civ. C. '12 
§§ 70S, 706; Civ. C. '02 §§ 634, 635; R. S. 554; 1893 (21) 412; 1920 (31) 989; 1937 (40) 428. 

§ 60-252. Same ; mortgages and deeds of trust. 

Mortgages or deeds of trust covering the whole or any part of the real or 
personal property of a railroad company and the appurtenant franchises shall 
be valid so as to affect from the time of their execution and delivery the rights 
of all subsequent creditors and purchasers, when filed within forty days from 
the execution and delivery thereof in the office of the Secretary of State ; 
provided, that within six months thereafter such mortgages or deeds of trust 
shall be recorded also in the books provided for the recording of mortgages on 
real estate in the office of clerk of court or register of mesne conveyances of 
each county in which any part of the real property affected thereby is situated. 
Such mortgages or deeds of trust, if so filed in the office of the Secretary of 
State subsequent to the expiration of such period of forty days and also re- 
corded in the books provided for the recording of mortgages on real estate in 
the office of the clerk of court or register of mesne conveyances subsequent 
to the expiration of such period of forty days shall be valid to affect the rights 
of all subsequent creditors and purchasers from the date of such record. Be- 
fore any such mortgage or deed of trust covering property of a railroad com- 
pany and the appurtenant franchises can be filed by the Secretary of State, 
copies thereof shall be furnished in duplicate, one of which shall be given its 
proper file number, indexed and retained in his office and the other shall be 
properly indorsed, giving the file number under which it is to be found and 
returned. 

Nothing herein contained shall be construed to affect the provisions of § 58- 
744. 

The provisions of this section shall in no way affect any such mortgage or 

112 



§ 60-253 Registration and Recordation § 60-256 

deed of trust covering property of a railroad company and the appurtenant 

franchises executed and fded or recorded prior to March 22 1937. 

1942 Code §8282; 1932 Code §8227; Civ. C. '22 §4791; Civ. C. '12 §3122; 1903 (24) 80; 
1937 (40) 140. 

§ 60-253. Proof of execution of such instruments. 

1 afore any such deed, lease, mortgage or other instrument in writing can 

be filed by the Secretary of State, the execution thereof shall first be proved 

by the affidavit in writing of a subscribing witness to such instrument, in the 

same manner prescribed for the probate of deeds in relation to the recording 

of deeds in the office of the register of mesne conveyances of the several 

counties of this State. 

1942 Code §3107; 1932 Code §3107; Civ. C. '22 §790; Civ. C. '12 §706; Civ. C. '02 
§635; 1920 (31) 989. 

§ 60-254. Filing and fee therefor. 

Such conveyances, leases, mortgages and other instruments in writing shall 

be filed by the Secretary of State in his office and for such filing he shall receive 

from the person offering such papers for file the sum of five dollars. 

1942 Code § 3108; 1932 Code § 3108; Civ. C. '22 § 791; Civ. C. '12 § 707; Civ. C. '02 § 636; 
1920 (31) 989. 

Cross reference. — As to production, when 
fraud is alleged, of instruments required to 
be recorded, see §§26-105 and 26-106. 

§ 60-255. Effect of certified copy of such recorded instrument. 

A certificate or certified copy of any of the aforesaid papers when once 
filed, as hereinabove provided, by the Secretary of State, shall be competent 
evidence of such filing and of the facts contained in each deed, lease, mort- 
gage or other instrument in writing so filed and certified in all the courts of 
this State. 

1942 Code § 3108; 1932 Code § 3108; Civ. C. '22 § 791; Civ. C. '12 § 707; Civ. C. '02 § 636; 
1920 (31) 989. 

§ 60-255.1. Satisfaction of such instruments. 

When any such mortgage so filed shall be fully satisfied, the mortgagee shall 
note such satisfaction on the margin of the copy on file or declare the mort- 
gage to be satisfied in a separate instrument in writing to be filed as provided 
in § 60-254 under a penalty of five hundred dollars to be recovered in any court 
of competent jurisdiction at the suit of the mortgagor, his assignees or any 
other party aggrieved thereby. 

1942 Code § 3108; 1932 Code §3108; Civ. C. '22 § 791; Civ. C. '12 § 707; Civ. C. '02 § 636; 
1920 (31) 989. 

§ 60-256. Recordation of certain instruments validated. 

The act entitled "An Act to Amend Sections 705, 706 and 707 of the Code of 
1912, Volume I, by substituting the words 'filed in duplicate' wherever the 
word 'recorded' occurs," approved March 10 1920- shall not affect or apply 
[6 SC Code]— 8 113 



§ 60-301 Code of Laws of South Carolina § 60-301 

to deeds of conveyance of railroad beds, tracks and rights of way, cars, loco- 
motive engines, rolling stock and other railway equipment, leases and mort- 
gages or other conditional sale of, or other instruments in writing relating to, 
such property which were duly recorded pursuant to the law as it existed prior 
to March 10 1920 and the records thereof are hereby declared to be legal and 
valid according to the terms of the law existing when such recordations were 
made. 

1942 Code §3109; 1932 Code §3109; Civ. C. '22 §792; 1921 (32) 62. 

Cross reference.— For provisions formerly §§ 58-861, 60-251, 60-253, 60-254 and 60- 
constituting §§705-707, Civ. C. 1912, see 255. 



CHAPTER 7. 

Chattel Mortgages. 

Sec. Sec. 

60-301. Filing and indexing personal prop- 60-305. Recordation of chattel mortgages 

erty liens in lieu of recording in good for three years only. 

full. 60-306. Extension of effect of recording 

60-302. Chattel mortgages securing one chattel mortgages. 

hundred dollars or less. 60-307. Mortgages of public service corpo- 

60-303. Chattel mortgages of crops. rations excepted. 

60-304. Same; exception for certain coun- 60-30S. Chattel mortgages, etc., in Sumter 

ties. County. 
60-304.1. Search for liens against crops for 

Secretary of Agriculture. 

§ 60-301. Filing and indexing personal property liens in lieu of recording in 
full. 

The original or a copy of any mortgage or other instrument conveying an 
interest in or creating a lien on personal property, or of any assignment, sat- 
isfaction, release or contract in the nature of subordination, waiver or ex- 
tension of a landlord's lien, laborer's lien, sharecropper's lien or of any other 
lien on personal property may be filed in the office of the register of mesne 
conveyances or clerk of court in the county where such instrument is required 
to be recorded. The clerk of court or register of mesne conveyances or other 
recording official in the counties of this State shall file any such instrument, 
or a copy thereof, when presented to them for that purpose, and endorse there- 
on the day and hour of its receipt and the book and page where it is recorded. 
He shall index it in the manner required by law for the indexing of chattel 
mortgages. It shall be a sufficient record of any such instrument that it or a 
copy thereof, be pasted or otherwise securely fastened or bound in the book 
provided therefor. 

1942 Code §8875-2; 1934 (38) 1462; 1935 (39) 191. 

Cross references. — As to recordation of As to fees for recording assignments, satis- 

liens on real property, see § 60-102. As to factions, releases, contracts, etc., mentioned 

assignment and release of certain liens on in §§ 60-102 and 60-108, see § 27-58. 
personal property, see §§ 60-106 to 60-108. 

114 [6SCCode] 



§60-302 Registration and Recordation §60-304.1 

§ 60-302. Chattel mortgages securing one hundred dollars or less. 

It shall be a sufficient record of any chattel mortgage, when the amount 
secured is not more than one hundred dollars, to enter upon an index to be 
kept for that purpose by the register of mesne conveyances the names of a 
mortgagor and mortgagee, the amount and character of the debt secured, a 
brief description of the chattels pledged, the date of the mortgage and of the 
maturity of the debt and the date of presentation of such mortgage for rec- 
ord. 

1942 Code §3635; 1932 Code §3635; Civ. C. '22 §2179; Civ. C. '12 § 1355; Civ. C. '02 
§950; G. S. 769; R. S. 820; 1839 (11) 115; 1928 (35) 1185. 

Chattel mortgages for less than one hun- being indexed. Milford v. Aiken, 61 S. C. 
dred dollars need not be probated before 110, 39 S. E. 233 (1901). 

§ 60-303. Chattel mortgages of crops. 

It shall be a sufficient registry and record of any chattel mortgage cover- 
ing a crop, without reference to the amount thereof, to enter upon an index 
book to be kept for that purpose by the register of mesne conveyances the 
names of the mortgagor and mortgagee, the amount and character of the debt 
secured, a brief description of the lands on which such crop is cultivated, the 
date of the maturing of the debt and the date of filing such mortgage for 
record. But if other chattels are included in a mortgage with crops and such 
mortgage is recorded in the regular way, such recording shall be sufficient 
notice of the crop mortgage without indexing it. 

1942 Code §3639-1; 1932 Code §3636; Civ. C. '22 §2180; Civ. C. '12 § 1356; 1911 (27) 
154; 1912 (27) 552; 1935 (39) 261, 306. 

Constitutionality. — This section, as it was in violation of S. C. Const., Art. 3, § 34. 

set out in the Civil Code of 1912, was con- People's Bank v. People's Bank, 122 S. C. 

stitutional even though a proviso that it 476, 115 S. E. 736 (1923). 
would apply only to certain counties was 

§ 60-304. Same ; exception for certain counties. 

The provisions of § 60-303 shall not apply to the counties of Abbeville, Beau- 
fort, Chesterfield, Clarendon, Georgetown, Greenville, Marlboro, Richland, Saluda 
and Sumter Counties. 

1942 Code §3639-1; 1932 Code §3636; Civ. C. '22 §2180; Civ. C. '12 §1356; 1911 (27) 
154; 1912 (27) 552; 1935 (39) 261, 306. 

Constitutionality. — See note to § 60-303. 

§ 60-304.1. Search for liens against crops for Secretary of Agriculture. 

Clerks of court or registers of mesne conveyances in the counties of this 
State shall upon request of the Secretary of Agriculture or any representative 
thereof search the public records in their respective offices for liens recorded 
against crops and shall furnish a written certificate of their findings and charge 
a fee therefor of not more than twenty-five cents for each search and certificate. 

1942 Code § 3639; 1933 (38) 237. 



115 



§ 60-305 Code of Laws of South Carolina § 60-351 

§ 60-305. Recordation of chattel mortgages good for three years only. 

The notice given by the filing for record or for indexing of any chattel 
mortgage or instrument in the nature of a chattel mortgage shall expire at 
the end of three years from the date of such filing. 

1942 Code §8876; 1932 Code §8876; 1928 (35) 1268; 1935 (39) 192; 1940 (41) 1612. 

§ 60-306. Extension of effect of recording chattel mortgages. 

The effect of the filing for record of any chattel mortgage or instrument 
in the nature of a chattel mortgage may in all respects, including the pres- 
ervation of priority of the mortgage over junior encumbrances, be extended 
for successive additional periods, each not exceeding three years from the date 
of the refiling, by filing in the proper office a statement signed by the mortga- 
gee or by the holder of the mortgage, and verified by his affidavit, identifying 
the mortgage and showing that it is in force and the nature and amount of 
the obligation still secured. Such statement shall be filed and entered in the 
same manner as an instrument filed for the first time and the filing officer shall 
be entitled to a like fee as upon the original filing. 

1942 Code §§8877, 8878; 1932 Code §§8877, 8878; 1928 (35) 1268; 1936 (39) 1494. 

§ 60-307. Mortgages of public service corporations excepted. 

Nothing contained in §§ 60-305 and 60-306 shall be construed to apply to any 
mortgages or similar instruments executed by any public service corporation. 

1942 Code §8880; 1932 Code §8880; 1928 (35) 1268. 

§ 60-308. Chattel mortgages, etc., in Sumter County. 

In Sumter County all chattel mortgages, agricultural mortgages, crop liens, 
title retention contracts and other similar contracts covering personal prop- 
erty, to be recorded, shall be printed or typewritten, including the names of 
the obligee and the obligor, and shall be submitted to the clerk of court in 
duplicate. The copy of the contract shall be recorded by the clerk of court 
and the original shall be returned to the obligee with a notation of the date 
and place of the recording. 

1951 (47) 406. 



CHAPTER 8. 

Marketing Contracts. 

Sec. Sec. 

60-351. When marketing contracts to be 60-354. Landlords' and laborers' liens not af- 

recorded. fected. 

60-352. Manner of recording such con- 60-355. Powers over members not affected. 

tracts. 60-356. Sharecropper's rights not affected. 
60-353. Effect of such recordation. 

§ 60-351. When marketing contracts to be recorded. 

Whenever any body of agricultural producers, any co-operative association 

116 



§ 60-352 Registration and Recordation § 60-353 

composed of agricultural producers or any co-operative marketing associa- 
tion incorporated under the laws of this State or under the laws of any other 
State of the United States and licensed to do business in this State (such body 
of agricultural producers, co-operative association or co-operative marketing 
association being hereinafter referred to as the association), which is engaged 
in marketing agricultural products for its members shall prepare and deliver 
to the register of mesne conveyances or to the clerk of the court in any county 
in which the office of the register of mesne conveyances has been abolished 
a book to be called "the contract book of " (naming the as- 
sociation), such book shall thereupon become a public record in the office of 
such register or such clerk and the register or clerk shall record therein the 
matters and things authorized by this chapter. 
1942 Code §8890; 1932 Code §8890; 1924 (33) 1072. 

§ 60-352. Manner of recording such contracts. 

At any time after any such book shall have been so delivered to the register 
or clerk as provided in § 60-351 the association which has delivered it may 
request the register or clerk to whom such book has been delivered to record 
therein any marketing contracts or agreements which have been entered into 
by such association and any members thereof. But if any such contracts or 
agreements be in the same words and figures as any other contracts or agree- 
ments with any other members of the association, with or without notations 
at the end thereof, and be separately signed by such members of the associa- 
tion, such association may have any such contract or agreement recorded once 
in extenso in such book and may furnish the register or the clerk with a list 
of the names of persons appearing on such contracts as signers thereof, with 
the dates, if any, of the signatures, respectively, together with a statement of 
any such notations, whereupon the register or clerk shall record such names 
as signatures, respectively, and the notations, if any, so furnished. Such recor- 
dation of the list of signatures so furnished shall be equivalent to the recorda- 
tion in extenso of the contract or agreement of each signer thereof. Such 
copy of such contracts or agreements and such list of names of persons appear- 
ing on such contracts as signers thereof and statement of notations shall be 
sworn to by some officer of the association cognizant of the facts before some 
officer authorized to take acknowledgments to deeds. But in no case shall 
any such contract or agreement be deemed to be recorded as to any signer 
thereof until his name shall be indexed in such book by the register or clerk, 
which indexing such officer is hereby required to do. 

1942 Code §8890; 1932 Code §8890; 1924 (33) 1072. 

§ 60-353. Effect of such recordation. 

When §§ 60-351 and 60-352 shall have been complied with and any such 
record as is therein mentioned is made in the county in which a member of 
any such association resides such record shall operate as constructive notice 
of the existence of such contract or agreement and of the terms thereof and 
all persons contracting or dealing with any such member in relation to any 

117 



§ 60-354 Code of Laws of South Carolina § 60-401 

such produce covered by such contract or agreement shall be bound thereby 
and all rights or liens acquired by any such person in such produce subse- 
quent to the date of such record shall be subject in all respects to the rights 
of the association under such contract or agreement. But if any agricultural 
produce covered by such contract is sold at public auction or on a warehouse 
floor, the warehouseman or purchaser shall not be liable for any damages 
provided to be paid by any member in such contract unless actual notice is 
given in writing before settlement that the produce sold or offered for sale 
belongs to a member of the association. 

1942 Code §8890: 1932 Code §8890; 1924 (33) 1072. 

§ 60-354. Landlords' and laborers' liens not affected. 

Nothing contained in this chapter shall affect the statutory lien of a land- 
lord for rent and advances or a laborer's lien. 
1942 Code §8890; 1932 Code §8890; 1924 (33) 1072. 

§ 60-355. Powers over members not affected. 

The provisions of this chapter shall not have the effect of conferring upon 
any such association any power over its members or of imposing upon its 
members any duties not now possessed by the association or owing by the 
members under existing contracts. 

1942 Code §8890; 1932 Code §8890; 1924 (33) 1072. 

§ 60-356. Sharecropper's rights not affected. 

Nothing contained in this chapter shall be construed to affect the rights 
of a sharecropper as they now exist under the laws of this State. 

1942 Code § 8890; 1932 Code § 8890; 1924 (33) 1072. 



CHAPTER 9. 

Veterans' Discharges. 

Sec. Sec. 

60-401. Book for recording discharge from 60-405. Same; special provisions for Marl- 
military and naval forces of Unit- boro County, 
ed States. 60-406. Oath to be taken. 

60-402. Recording such discharges. 60-407. Forgery of discharge or certificate. 

60-403. Same; assistance from American 60-408. Certified copies. 

Legion. 60-409. Discharge of merchant seamen in 

60-404. Same; special provisions for Ches- Jasper and Spartanburg Counties, 
terfield County. 

§ 60-401. Book for recording discharges from military and naval forces of 
United States. 
There shall be provided and at all times maintained in the office of the 
clerk of court of each county a special and permanent book in which shall be 
recorded official discharges from the military and naval forces of the United 
States. Such book shall be securely bound, shall contain an alphabetical index 

118 



§ 60-402 Registration and Recordation § 60-406 

and the pages of it shall lie printed in the form of discharge papers, with suf- 
ficient blank lines for the recording' of such dates as may be contained in the 
discharge papers offered for registration. 

1942 Code §8893; 1932 Code §8893; 1923 (33) 98. 

§ 60-402. Recording such discharges. 

Upon the presentation of any official discharge or official certificate of lost 
discharge from the armed services of the United States, the clerk of court 
of any county of the State shall record free such discharge in the book pro- 
vided for in § 60-401. 

1942 Code §8893; 1932 Code §8893; 1923 (33) 98; 1945 (44) 8, 54. 

§ 60-403. Same; assistance from American Legion. 

The clerk of court shall call to his assistance the head officer of the posts of 
American Legion in his county to furnish a perfect list of the persons entitled 
to registration. 

1942 Code §8893; 1932 Code §8893; 1923 (33) 98. 

§ 60-404. Same ; special provisions for Chesterfield County. 

The clerk of court of Chesterfield County shall, upon the request of a veteran, 
have the armed forces discharge of veterans of World War If photostated 
and record such photostatic copy in a proper record book. The cost of such 
photostatic copies in Chesterfield County shall be paid upon warrant of the 
governing body of the county out of the general funds of the county. 

1946 (44) 2606. 

§ 60-405. Same ; special provisions for Marlboro County. 

The clerk of court for Marlboro County in all instances when the discharge 
is photographed or photostated may charge the actual expense for recording 
such discharge. 

1942 Code §8893: 1932 Code §8893; 1923 (33) 98; 1946 (44) 1418. 

§ 60-406. Oath to be taken. 

If any clerk of court shall be in doubt as to whether or not any paper so 
presented for registration is an official discharge from the Army, Navy or 
Marine Corps of the United States or an official certificate of lost discharge, 
he may examine, under oath, the person so presenting such discharge or other- 
wise inquire into its validity. And every clerk of court to whom a discharge 
or certificate of lost discharge is presented for registration shall administer to 
the person offering such discharge or certificate of lost discharge for registra- 
tion the following oath, to be recorded with and form a part of the registra- 
tion of such discharge or certificate of lost discharge : 

. "I, , being duly sworn, depose and say that 

the foregoing discharge (or certificate of lost discharge) is the original dis- 
charge (or certificate of lost discharge) issued to me by the government of 

119 



§ 60-407 Code of Laws of South Carolina § 60-409 

the United States and that no alterations have been made therein by me or 
by any person to my knowledge. 

"Subscribed and sworn to before me this 

day of 19 . . . ." 

1942 Code §8893; 1932 Code §8893; 1923 (33) 98. 

§ 60-407. Forgery of discharge or certificate. 

Any person who shall forge or in any manner alter any discharge or certifi- 
cate of lost discharge issued by the government of the United States and 
offer it for registration or secure the registration of it under the provisions 
of this chapter shall be guilty of a misdemeanor and, upon conviction, shall be 
fined or imprisoned in the discretion of the court. 

1942 Code §8893; 1932 Code §8893; 1923 {33) 98. 

§ 60-408. Certified copies. 

Any person desiring a certified copy of any such discharge or certificate of 
lost discharge, registered under the provisions of this chapter, shall apply for 
it to the clerk of court of the county in which such discharge or certificate 
of lost discharge is registered and the clerk of court shall furnish such certi- 
fied copy upon the payment of a fee of fifty cents therefor. 

1942 Code §8893; 1932 Code §8893; 1923 (33) 98. 

§ 60-409. Discharge of merchant seamen in Jasper and Spartanburg Counties. 

The clerks of court of Jasper and Spartanburg Counties shall file and record 
free of any fee or charge, any discharge presented to them for filing and recor- 
dation issued by the United States merchant marine to any person whose serv- 
ice as shown by such discharge was in the merchant marine during World War 
I or World War II. 

1945 (44) 94, 206. 



120 



Title 61. 
Retirement Systems.* 

Chap. 1. South Carolina Retirement System, §§ 61-1 to 61-202. 

2. Retirement of Supreme Court Justices and Circuit Court Judges, 

§§61-251 to 61-258. 

3. Insurance and Annuity Benefits of Peace Officers, §§ 61-301 to 61-325. 

4. Firemen's Tension Funds in Certain Cities, §§ 61-351 to 61-437. 

5. Teacher's Retirement Funds, §§ 61-451 to 61-557. 

6. Miscellaneous Local Provisions, §§ 61-601 to 61-602. 



CHAPTER 1. 
South Carolina Retirement System. 



Article 1. 
General Provisions. 
Sec. 

61-1. Definitions. 
61-2. Establishment of System. 
61-3. Property exempt from taxation. 
61-4. Protection against fraud. 
61-5. Possible revision for Federal Social 
Security. 

Article 2. 
Administration. 

61-11. State Budget and Control Board to 
administer. 

61-12. Medical Board. 

61-13. Actuarial and other services. 

61-14. Appointment of actuary. 

61-15. Investigation and valuation by actu- 
ary every five years. 

61-16. Annual valuation by actuary. 

61-17. Actuarial data. 

61-18. Interest assumption 

61-19. Rules and regulations. 

61-20. Records and reports. 

Article 3. 
Membership in System. 

61-31. How composed. 

61-32. Employment after December 31 1948. 
61-33. Employment between April 26 1945 
and June 30 1950. 



Sec. 

61-34. Subsequent election for membership. 

61-35. Members of former departmental 
plans. 

61-36. Discontinuance of such systems. 

61-37. Political subdivisions as employers. 

61-37.1. Employees of such subdivisions as 
members. 

61-38. Firemen and peace officers. 

61-39. Option of employees receiving less 
than fifty dollars a month and leg- 
islators. 

61-40. Option of school lunch and trans- 
portation and nonpermanent em- 
ployees. 

61-41. Option of day laborers. 

61-42. EfTect of absence from service on 
membership. 

61-43. Election of former employees dis- 
charged from armed services. 

61-44. Determination of who is teacher or 
employee. 

61-45. Effect on members, etc., of other 
statutes. 

Article 4. 

Creditable Service. 

61-51. Claims for prior service. 

61-51.1. Verification of service claimed. 

61-51.2. Prior service certificates. 

61-52. What constitutes year's service. 

61-53. What constitutes creditable service. 

61-54. Contributions for prior service. 



* As to pension of members of militia disabled in service of State, see § 44-10. As to 
workmen's compensation generally, see Title 72. 

121 



Code of Laws of South Carolina 



Article 5. 

The Several Funds and Collections 
Therefor. 

Sec. 

61-61. Assets to be segregated among four 
funds. 

61-62. Employee Annuity Savings Fund. 

61-63. Deductions made though compensa- 
tion thereby reduced below mini- 
mum. 

61-64. Repayment of amounts withdrawn. 

61-65. Employee Annuity Reserve Fund. 

61-66. Employer Annuity Accumulation 
Fund. 

61-67. Normal contribution rate. 

61-68. Accrued liability contribution rate. 

61-69. Minimum contributions to Employer 
Annuity Accumulation Fund. 

61-70. Discontinuance of accrued liability 
contribution. 

61-71. Payments from Employer Annuity 
Accumulation Fund. 

61-72. Obligations of Employer Annuity 
Accumulation Fund. 

61-73. Transfer between funds on retire- 
ment. 

61-74. Transfers on advice of actuary. 

61-75. Earnings credited to Employer An- 
nuity Accumulation Fund. 

61-76. Payments to System and prior serv- 
ice credits of persons in military 
service, etc. 

61-77. Employer Annuity Reserve Fund. 

61-78. Collection of members' contributions. 

61-79. Collection of employers' contribu- 
tions. 

61-80. Deductions and employer contribu- 
tions for teachers. 

Article 6. 
Management of Funds. 
61-91. Board to control. 

61-92. Custody and disbursement of funds. 
61-93. Cash to be kept available. 
61-94. Use of funds, etc., by Board members 
or employees prohibited. 

Article 7. 
Retirement and Retirement Benefits. 

61-101. Retirement at age sixty or after 
thirty-five years service. 

61-102. Retirement of teachers at sixty-five; 
exceptions. 

61-103. Retirement at seventy. 

61-104. Disability retirement. 

61-105. Service retirement allowance. 

61-106. Allowance upon retirement for dis- 
ability. 

61-107. Re-examination of beneficiaries re- 
tired on account of disability. 



Sec. 

61-108. Effect of ability to engage in gain- 
ful occupation. 

61-109. Effect of restoration to service. 

61-110. Effect of temporary consultative 
employment. 

61-111. Optional allowances. 

61-112. Special benefits to teachers for 
service prior to July 1 1945. 

61-113. How annuities payable. 

61-114. Return of contributions or deferred 
retirement. 

61-115. Effect of change or error in records. 

61-116. Exemption from taxation and legal 
process; assignment. 

61-117. Credit of State not pledged for pay- 
ments. 

Article 8. 

Participation of Certain Counties. 

61-131. Certain counties participate in Sys- 
tem for employees and teachers. 

61-132. Chesterfield and Laurens Counties 
participate for employees. 

61-133. Payment of contributions; tax there- 
for. 

61-134. Remittance of funds; employees' 
deductions. 

61-135. Marlboro County participates. 

Article 9. 

Participation of Greenville, Lee and 
Spartanburg Counties. 

61-141. Payment of contributions by Green- 
ville, Lee and Spartanburg Coun- 
ties. 

Article 10. 

Participation by Fairfield and Oconee 
Counties. 

61-151. Participation in System. 
61-152. Remittance of funds; employees' 
deductions. 

Article 11. 

Participation by Greenwood County. 

61-161. Levy of taxes to pay contribution. 
61-162. Payment of contribution. 

Article 12. 
Participation by Newberry County. 

61-171. Participation in System. 



61-172. 



in 

Remittance of 
deductions. 



funds; employees' 



Article 13. 
Participation by Pickens County. 

61-181. Participation in System, 



122 



§61-1 Retirement Systems §61-1 

Sec. Sec. 

61-182. Levy of taxes to pay contributions. 61-192. School boards are employers. 

61-183. Remittance of funds; deductions. 61-193. Eligibility of teachers. 

Article 14. Article 15. 

Participation by Richland County. Participation by School Districts in 

ai 101 t) . : 4. -i .• York County. 

61-191. Payment of contributions. J 

61-191.1. Payment from other retirement 61-201. Contributions on supplemental sal- 
fund^, aries of teachers. 
61.191.2. Eligibility for retirement. 61-202. Levy of taxes to provide funds. 

Article 1. 

General Provisions. 
§ 61-1. Definitions. 

The following- words and phrases as used in this chapter, unless a different 
meaning is plainly required by the context, shall have the following mean- 
ings : 

(1) "Retirement System" or "System" shall mean the South Carolina Retire- 
ment System established under § 61-2; 

(2) "Public School" shall mean any day school conducted within the State 
under the authority and supervision of a duly elected or appointed city, dis- 
trict or county school board ; 

(3) "Teacher" shall mean any teacher, helping teacher, attendance teacher, 
librarian, principal, supervisor, superintendent of public schools, superintend- 
ent of public instruction, county superintendent of education, person employed 
in the office of a county superintendent of education, bus driver and any other 
person employed in the public schools supported by the State, counties and 
school districts ; 

(4) "Employee" shall mean : (a) to the extent he is compensated by the 
State, any employee, agent or officer of the State or any of its departments, 
bureaus and institutions, other than the public schools, whether such em- 
ployee is elected, appointed or employed; (b) the president, any dean, pro- 
fessor or teacher or any other person employed in any college, university or 
educational institution of higher learning supported by and under the control 
of the State ; (c) any agent or officer of any county, municipality or school 
district, or of any agency or department thereof, which shall have been ad- 
mitted to the System under the provisions of § 61-37, to the extent he is com- 
pensated for services from public funds; (d) any employee of the extension 
service and any other employee a part of whose salary or wage is paid by the 
Federal Government if the Federal funds from which such salary or wage is 
paid shall before disbursement be and become State funds ; and (e) any em- 
ployee of any service organization, the membership of which is composed 
solely of persons eligible to be teachers or employees as defined by this 
section, if the compensation received by the employees of such service organ- 
izations shall be provided from moneys paid by the members as dues or other- 
wise or from funds derived from public sources and if the employee contribu- 
tions prescribed by this Title shall be paid from the funds of the service or- 

123 



§ 61-1 Code of Laws of South Carolina § 61-1 

ganization ; the word "employee" shall not include Supreme and Circuit Court 
Judges; 

(5) "Employer" shall mean the State, a county board of education, a district 
board of trustees, a city board of education, the board of trustees or other 
managing board of any State supported college or educational institution or 
any other agency of the State by which a teacher or employee is paid; the 
term "employer" shall also include any county, municipality or other political 
subdivision of the State, or any agency or department thereof, which shall have 
been admitted to the System under the provisions of § 61-37 or any service 
organization referred to in paragraph (4) of this section ; 

(6) "Member" shall mean any teacher or employee included in the member- 
ship of the System as provided in article 3 of this chapter ; 

(7) "Board" shall mean the State Budget and Control Board which shall 
act under the provisions of this chapter through its division of personnel ad- 
ministration ; 

(8) "Medical Board" shall mean the board of physicians provided for in 
§61-12; 

(9) "Service" shall mean service as a teacher or employee rendered to and 
paid for by an employer ; 

(10) "Prior service" shall mean service rendered as a teacher or employee 
prior to the date of membership for which credit is allowable under article 
4 of this chapter; 

(11) "Membership service" shall mean service as a teacher or employee ren- 
dered while a member of the System ; 

(12) "Creditable service" shall mean prior service plus membership service 
for which credit is allowable as provided in article 4 of this chapter; 

(13) "Beneficiary" shall mean any person in receipt of a pension, an annuity, 
a retirement allowance or other benefit provided under the System ; 

(14) "Regular interest" shall mean interest compounded annually at such rate 
as shall be determined by the Board in accordance with §61-18; 

(15) "Accumulated contribution' shall mean the sum of all the amounts de- 
ducted from the compensation of a member and credited to his individual ac- 
count in the employee annuity savings fund, together with regular interest 
thereon as provided in article 5 of this chapter ; 

(16) "Earnable compensation" shall mean the full rate of the compensation 
that would be payable to a teacher or employee if he worked for his full 
normal working time ; when compensation includes maintenance, fees and 
other things of value the Board shall fix the value of that part of the compen- 
sation not paid in money directly by the employer ; 

(17) "Average final compensation" shall mean the average annual earnable 
compensation of a teacher or employee during his last five years of service 
or, if he had less than five years of service, his average earnable compensation 
for his total service ; 

(18) "Employee annuity" shall mean annual payments for life derived from 
the accumulated contributions of a member ; 

(19) "Employer annuity" shall mean annual payments for life derived from 
money provided by the employer ; 

124 



§61-2 Retirement Systems §61-5 

(20) "Retirement allowance'' shall mean the sum of the employer annuity 
and the employee annuity or any optional benefit payable in lieu thereof; 

(21) "Retirement" shall mean the withdrawal from active service with a 
retirement allowance granted under the System ; 

(22) "Employee annuity reserve" shall mean the present value of all payments 
to be made on account of an employee annuity or benefit in lieu thereof, 
computed on the basis of such mortality tables as shall be adopted by the Re- 
tirement Board and regular interest; 

(23) "Employer annuity reserve" shall mean the present value of all pay- 
ments to be made on account of an employer annuity or benefit in lieu thereof, 
computed upon the basis of such mortality tables as shall be adopted by the 
Retirement Board and regular interest ; and 

(24) "Actuarial equivalent" shall mean a benefit of equal value when com- 
puted upon the basis of such mortality tables as shall be adopted by the 
Retirement Board and regular interest. 

1945 (44) 212; 1949 (46) 424; 1950 (46) 3605; 1951 (47) 172. 

§61-2. Establishment of System. 

A retirement system is hereby established and placed under the management 
of the State Budget and Control Board for the purpose of providing retire- 
ment allowances and other benefits for teachers and employees of the State 
and political subdivisions or agencies or departments thereof. The System 
so created shall have the power and privileges of a corporation and shall be 
known as the South Carolina Retirement System and by such name all of its 
business shall be transacted, all of its funds invested and all of its cash, securi- 
ties and other property held. 

1945 (44) 212: 1949 (46) 424. 

§ 61-3. Property exempt from taxation. 

All property owned or acquired by the Retirement System for the purposes 
of this chapter shall be exempt from all taxes imposed by the State or any 
political subdivision thereof. 

1945 (44) 212; 1949 (46) 424. 

§61-4. Protection against fraud. 

Any person who shall knowingly make any false statement or shall falsify 
or permit to be falsified any record of the System in any attempt to defraud the 
System as a result of such act shall be guilty of a misdemeanor and on convic- 
tion thereof by any court of competent jurisdiction shall be punished by a fine 
not exceeding five hundred dollars or imprisonment in the county jail not 
exceeding twelve months, or both such fine and imprisonment at the discre- 
tion of the court. 

1945 (44) 212; 1949 (46) 424. 

§ 61-5. Possible revision for Federal Social Security. 

The State hereby reserves the right, in case the Federal Social Security 
Act be so amended that the members or beneficiaries of the System can be 

125 



§61-11 Code of Laws of South Carolina §61-15 

included in the Old Age and Survivors Insurance plan provided for in said 
Federal Act, to revise the System upon a fair and equitable basis so that the 
members or beneficiaries of the System may be included under the provisions 
of said Federal Act. 

1945 (44) 212; 1949 (46) 424. 

Article 2. 

Administration. 

§ 61-11. State Budget and Control Board to administer. 

The general administration and responsibility for the proper operation of 
the System and for making effective the provisions hereof are hereby vested 
in the State Budget and Control Board. 

1945 (44) 212; 1949 (46) 424. 

§61-12. Medical Board. 

The Board shall designate a Medical Board to be composed of three physi- 
cians who are not members of the System. If required, other physicians who 
are not members of the System may be employed to report on special cases. 
The Medical Board shall arrange for and pass upon all medical examinations 
required under the System, shall investigate all essential statements and 
certificates by or on behalf of a member in connection with an application for 
disability retirement, and shall report in writing to the Board its conclusions 
and recommendations upon all matters referred to it. 

1945 (44) 212; 1949 (46) 424. 

§ 61-13. Actuarial and other services. 

The Board shall engage such actuarial and other services as shall be re- 
quired to transact the business of the System. 

1945 (44) 212; 1949 (46) 424. 

§ 61-14. Appointment of actuary. 

The Board shall designate an actuary who shall be the technical advisor of 
the Board on matters regarding the operation of the System and shall perform 
such other duties as are required in connection therewith. 

1945 (44) 212; 1949 (46) 424. 

§ 61-15. Investigation and valuation by actuary every five years. 

At least once in each five-year period, the first of which began in 1947, the 
actuary shall make an actuarial investigation into the mortality, service and 
compensation experience of the members and beneficiaries of the System and 
shall make a valuation of the contingent assets and liabilities of the System 
and the Board, after taking into account the results of such investigations and 
valuations, shall adopt for the System such mortality, service and other tables 
as shall be deemed necessary. 

1945 (44) 212; 1949 (46) 424. 

126 



§ 61-16 Retirement Systems § 61-32 

§ 61-16. Annual valuation by actuary. 

On the basis of regular interest and tables last adopted by the Board the 
actuary shall make an annual valuation of the contingent assets and liabilities 
of the System. 

1945 (44) 212; 1949 (46) 424. 

§61-17. Actuarial data. 

The Board shall keep in convenient form such data as shall be necessary for 
actuarial valuation of the contingent assets and liabilities of the System and 
for checking the experience of the System. 

1945 (44) 212; 1949 (46) 424. 

§61-18. Interest assumption. 

The Board shall determine from time to time the rate of regular interest for 
use in all calculations, with the rate of four per cent per annum applicable un- 
less heretofore or hereafter changed by the Board. 

1945 (44) 212; 1949 (46) 424. 

§61-19. Rules and regulations. 

Subject to the limitations hereof, the Board shall, from time to time, estab- 
lish rules and regulations for the administration of the System and for the 
transaction of business. The Board shall also, from time to time, in its dis- 
cretion, adopt rules and regulations to prevent injustices and inequalities which 
might otherwise arise in the administration of the System. 

1945 (44) 212; 1949 (46) 424. 

§61-20. Records and reports. 

The Board shall keep a record of all its proceedings under this chapter 
which shall be open to public inspection. It shall publish annually a report 
showing the fiscal transactions of the System for the preceding year, the 
amount of the accumulated cash and securities of the System and the last 
balance sheet showing the financial condition of the System by means of an 
actuarial valuation of the contingent assets and liabilities of the System. All 
persons employed by the Board and the expenses of the Board shall be paid 
from the annual general appropriations of the State. 

1945 (44) 212; 1949 (46) 424. 

Article 3. 

Membership in System. 
§61-31. How composed. 

The membership of the System shall be composed as provided in this article. 
1945 (44) 212; 1949 (46) 424. 

§ 61-32. Employment after December 31 1948. 

All persons who have or shall become teachers or employees after December 
31 1948, except those specifically excluded under § 61-35 or those as to whom 
membership is optional under §§ 61-39 to 61-41, have become or shall become 
members of the System as a condition of their employment. 

1945 (44) 212; 1949 (46) 424; 1950 (46) 2369. 

127 



§ 61-33 Code of Laws of South Carolina § 61-37 

§ 61-33. Employment between April 26 1945 and June 30 1950. 

All persons who were teachers or State, county, or municipal employees 
on April 26 1945, or who became such after said date but on or before Decem- 
ber 31 1951, except those specifically excluded under § 61-35 and the persons 
permitted to exercise an option under §§ 61-39 to 61-41, became members as of 
July 1 1945, or as of the date of last employment, if later, unless on or be- 
fore December 31 1948 they filed with the Board on a form prescribed by the 
Board a notice of their election not to be covered in the membership of the 
System and a duly executed waiver of all present and prospective benefits 
which would otherwise inure to them on account of their participation in the 
System. 

1945 (44) 212; 1949 (46) 424; 1950 (46) 2170, 2369; 1951 (47) 172, 213. 

§ 61-34. Subsequent election for membership. 

A teacher or employee whose membership in the System is contingent on 
his own election and who, after December 31 1948, had an effective election 
not to become a member may thereafter apply for and be entitled to member- 
ship, but no such teacher or employee shall receive prior service credit. 

1945 (44) 212; 1949 (46) 424. 

§ 61-35. Members of former departmental plans. 

Notwithstanding any provisions to the contrary, any teacher or employee 
who was a member of any other retirement plan or fund in operation on 
April 26 1945 under sponsorship of any governmental agency or department 
shall not be entitled to membership in the System unless on or before July 1 
1946 any such teacher or employee indicated by a notice filed with the Board 
on a form prescribed by the Board his individual election and choice to partic- 
ipate in the System. If a majority of the members of any such retirement 
plan or fund so voted all members of that retirement plan or fund became 
eligible to participate in the System and became members of the System unless 
within thirty days next succeeding a date named by the Board they elected 
not to become members. 

1945 (44) 212; 1949 (46) 424. 

§ 61-36. Discontinuance of such systems. 

If the majority of the members of a retirement or pension plan or fund voted 
to enter the System in the manner described in § 61-35, the local plan or fund 
was discontinued and the payment of all pensions to members on the pension 
roll as of the date of discontinuance became and is an obligation of the city, 
county or other unit in which the plan or fund was operated and shall be con- 
tinued and paid by such city, county or other unit. 

1945 (44) 212; 1949 (46) 424. 

§ 61-37. Political subdivisions as employers. 

Any county, municipality or other political subdivision of the State, any 
agency or department thereof, including a school board, and any service organ- 
ization as defined in paragraph (4) of § 61-1 may, in its discretion, become an 

128 



§61-37.1 Retirement Systems §61-40 

employer by applying to the Board for admission to the System and by comply- 
ing with the requirements hereof and the rules and regulations of the Board. 
1945 (44) 212; 1949 (46) 424; 1950 (46) 2369; 1951 (47) 172. 

§ 61-37.1. Employees of such subdivisions as members. 

All persons, except those specifically excluded in §§ 61-35 and 61-38 and the 
persons permitted to exercise the option under the §§ 61-39 to 61-41, who shall 
be employed by any county, municipality or other political subdivision or 
agency or department thereof or any eligible service organization, after the 
admission of such county, municipality, or other subdivision, agency or de- 
partment thereof or service organization into the System under the provisions 
of this section, shall become members of the System as a condition of their 
employment. All persons, except those specifically excluded in § 61-35 and 
persons permitted to exercise the option under §5 61-39 to 61-41, who are em- 
ployed by any county, municipality or other political subdivision or agency 
or department thereof or by any eligible service organization at the date of the 
admission of such county, municipality or other subdivision or agency or de- 
partment thereof or eligible service organization into the System under the pro- 
visions of this section shall become members on the date of such admission, 
unless within a period of six months next following such admission they 
shall have filed with the Retirement Board on a form prescribed by the Board 
a notice of their election not to be covered in the membership and a duly 
executed waiver of all present and prospective benefits which would otherwise 
inure to them on account of their participation in the System. 

1945 (44) 212; 1949 (46) 424; 1950 (46) 2369; 1951 (47) 172. 

Editor's note. — The word "Retirement" in 
the 16th line should have been deleted. 

§ 61-38. Firemen and peace officers. 

A person employed by the State or by any county, municipality or other 
political subdivision in the capacity of a fireman or a peace officer shall not 
be required to participate in the Retirement System if such person is or be- 
comes a member of any fireman's pension fund or plan which may be estab- 
lished or created pursuant to law or the police insurance and annuity fund. 

1949 (46) 424. 

§ 61-39. Option of employees receiving less than fifty dollars a month and 
legislators. 
All employees and teachers having a monthly compensation from public 
funds of fifty dollars or less and members of the General Assembly may exer- 
cise the option within thirty days after entering upon the discharge of such 
duties not to become a member of the System. 

1950 (46) 2369. 

§ 61-40. Option of school lunch and transportation and nonpermanent em- 
ployees. 
Any teacher or employee employed in connection with the public school 
lunch program or pupil transportation system or in connection with any pro- 
[6SCCode] — 9 129 



§ 61-41 Code of Laws of South Carolina § 61-51 

gram or activity defined by the Board as being of a nonpermanent nature 
may exercise an option not to become a member of the System, if such 
option is exercised within thirty days after entering upon the discharge of his 
duties in such employment. 
1950 (46) 2369. 

§61-41. Option of day laborers. 

Day laborers may exercise an option not to become members of the System, 
provided they file notice thereof within thirty days after beginning work as 
such day laborers. 

1950 (46) 2369. 

§ 61-42. Effect of absence from service on membership. 

Should any member of the System in any period of six consecutive years 
after becoming a member be absent from service more than five years, with- 
draw his contributions or become a beneficiary or die, he shall thereupon cease 
to be a member. 

1945 (44) 212; 1949 (46) 424. 

§ 61-43. Election of former employees discharged from armed services. 

Any former employee or teacher honorably discharged from the armed 
services of the United States shall have ninety days from the date of discharge 
from such service to make an election to become a member of the System. 

1945 (44) 212; 1949 (46) 424. 

§ 61-44. Determination of who is teacher or employee. 

In all cases of doubt, the Board shall determine whether any person is a 
teacher or employee for the purposes of the System. 

1945 (44) 212; 1949 (46) 424. 

§ 61-45. Effect on members, etc., of other statutes. 

No other provisions of law in any other statute which provides wholly or 
partly at the expense of the State for annuities, pensions or retirement benefits 
for teachers or employees of the State, their widows or other dependents, shall 
apply to members or beneficiaries of the System, their widows or other de- 
pendents. 

1945 (44) 212; 1949 (46) 424. 

Article 4. 

Creditable Service. 

§61-51. Claims for prior service. 

Under rules and regulations adopted by the Board, each member who was 
a teacher or employee at any time prior to July 1 1945 and who became a 
member on or before December 31 1951 was required to file a detailed state- 

130 [6SCCode] 



§61-51.1 Retirement Systems §61-53 

ment of all service as a teacher or employee rendered by him prior to July 
1 1945 for which he claimed credit. 

1945 (44) 212; 1949 (46) 424; 1950 (46) 2170; 1951 (47) 172, 213. 

Cross reference. — As to when teacher or 
employee not to receive prior service credit, 
see § 61-34. 

§ 61-51.1. Verification of service claimed. 

Subject to the restrictions herein contained and to such other rules and 
regulations as the Retirement Hoard may adopt, the Board verified or, if such 
verifications have not been completed, shall verify, as soon as practicable after 
the filing of such statements under § 61-51, the service therein claimed. In 
lieu of a determination of the actual compensation of a member that was 
received during such period of prior service the Retirement Board may use 
for the purpose of the System the compensation rates which, if they had 
progressed with the rates of salary increase shown in the tables as prescribed 
in § 61-15, would have resulted in the same average earnable compensation 
of the member for five years immediately preceding July 1 1945 as the records 
show the member actually received. 

1945 (44) 212; 1949 (46) 424. 

Editor's note. — The word "Retirement" 
in the 2nd line should have been deleted. 

§ 61-51.2. Prior service certificates. 

Upon verification of such statements of service, the Board issued or shall 
issue prior service certificates certifying to each member the period of service 
prior to July 1 1945 with which the member was credited on the basis of his 
statement of service. So long as membership continues a prior service certifi- 
cate shall be final and conclusive for retirement purposes as to such service. 
When membership ceases, such prior service certificate shall become void. 
Should the teacher or employee again become a member such teacher or em- 
ployee shall enter the System as a teacher or employee not entitled to prior 
service credit except as provided in § 61-109. 

1945 (44) 212; 1949 (46) 424. 

§ 61-52. What constitutes year's service. 

The Board shall fix and determine by appropriate rules and regulations 
how much service in any year is equivalent to one year of service, but in no 
case shall more than one year of service be creditable for all services in one 
year. Service rendered for the regular school year in any district shall be 
equivalent to one year's service. 

1945 (44) 212; 1949 (46) 424. 

§ 61-53. What constitutes creditable service. 

Creditable service at retirement on which the retirement allowance of a 
member shall be based shall consist of the membership service rendered by 
him since he last became a member and also the amount of service certified on 
his prior service certificate, if he has a prior service certificate, which is in full 
force and effect. 

1945 (44) 212; 1949 (46) 424. 

131 



§ 61-54 Code of Laws of South Carolina § 61-63 

§ 61-54. Contributions for prior service. 

All counties, municipalities or other political subdivisions of the State, any 
agencies and departments thereof including school boards, and any service 
organization as defined in item (4) of § 61-1 which availed themselves of the 
provisions of said § 61-37 before December 31 1951 did so without loss or 
prejudice to their affected employees' or teachers' claims to prior service credits 
but such electing employers and their employees or teachers shall be subject 
to the payment of such contributions, if any, as the Board may deter- 
mine to be necessary to avoid any possible discrimination as against employers 
and employees or teachers coming under the terms hereof at an earlier date. 

1949 (46) 424. 

Article 5. 
The Several Funds and Collections Therefor. 

§ 61-61. Assets to be segregated among four funds. 

All of the assets of the System shall be credited, according to the purpose 
for which they are held, among four bookkeeping accounts, hereinafter referred 
to as "Funds." Such accounts shall be referred to as the Employee Annuity 
Savings Fund, the Employee Annuity Reserve Fund, the Employer Annuity 
Accumulation Fund and the Employer Annuity Reserve Fund. 

1945 (44) 212; 1949 (46) 424. 

§ 61-62. Employee Annuity Savings Fund. 

The Employee Annuity Savings Fund shall be the account in which shall 
be recorded the contributions deducted from the earnable compensation of 
members to provide for their employee annuities. Each employer shall cause 
to be deducted from the compensation of each member on each and every 
payroll of such employer for each and every payroll period four per cent of his 
earnable compensation. In determining the amount earnable by a member 
in a payroll period, the Board may consider the rate of annual earnable 
compensation of such member on the first day of the payroll period as 
continuing throughout such payroll period and it may omit deduction from 
earnable compensation for any period less than a full payroll period if a 
teacher or employee was not a member on the first day of the payroll period. 

Each employer shall certify to the Board on each and every payroll or 
in such other manner as the Board may prescribe the amounts to be deducted 
and such amounts shall be deducted and, when deducted, shall be credited 
to said Employee Annuity Savings Fund, to the individual accounts of the 
members from whose compensation the deductions were made. 

1945 (44) 212; 1949 (46) 424. 

§ 61-63. Deductions made though compensation thereby reduced below min- 
imum. 
The deductions provided for in § 61-62 shall be made notwithstanding that 
the minimum compensation provided for by law for any member shall be 
reduced thereby. Every member shall be deemed to consent and agree to the 

132 



§61-64 Retirement Systems §61-66 

deduction made and provided for in said section and shall receipt for his full 
compensation, and payment of such compensation less such deduction shall be 
a full and complete discharge and acquittance of all claims and demands what- 
soever for the services rendered by such person during the period covered by 
such payments, except as to the benefits provided hereunder. 
1945 (44) 212; 1949 (46) 424. 

§ 61-64. Repayment of amounts withdrawn. 

In addition to the contributions deducted from earnable compensation of 
members as provided in § 61-62 any member may, with the approval of the 
Board, redeposit to his credit in the Employee Annuity Savings Fund by 
a single payment to the System an amount equal to the total amount, if 
any, which he previously withdrew therefrom. Interest at such rates, not 
to exceed three per cent per annum and not to exceed the rate of regular in- 
terest last adopted by the Board, as may be set from time to time by the 
Board, shall be allowed on such amounts so deposited and shall be used in 
determining the additional employee annuity payable at retirement on account 
of such amounts. But the amount of the employer annuity otherwise payable 
shall not be increased on account of such amounts so deposited and if the 
member ceases to be a teacher or employee, except by retirement under the 
System, such amounts shall be treated in the same manner as his regular 
contributions under the provisions of § 61-114. 

1945 (44) 212; 1949 (46) 424. 

§ 61-65. Employee Annuity Reserve Fund. 

The Employee Annuity Reserve Fund shall be the account in which shall 
be recorded the reserves on all employee annuities in force and against which 
shall be charged all employee annuities and all benefits in lieu of employee 
annuities. Should a beneficiary retired on account of disability be restored 
to active service and again become a member under the provisions of § 61-109, 
his employee annuity reserve shall be transferred from the Employee Annuity 
Reserve Fund to the Employee Annuity Savings Fund and credited to his 
individual account therein. 

1945 (44) 212; 1949 (46) 424. 

§ 61-66. Employer Annuity Accumulation Fund. 

The Employer Annuity Accumulation Fund shall be the account in which 
shall be recorded all reserves for the payment of all employer annuities and 
other benefits payable from contributions made by employers and against 
which shall be charged all employer annuities and other benefits on account 
of members with prior service credit. There shall be paid to the System and 
credited to the Employer Annuity Accumulation Fund contributions by the 
employers in an amount equal to a certain percentage of the earnable compen- 
sation of each member employed by each employer to be known as the "normal 
contribution" and an additional amount equal to a percentage of such earnable 
compensation to be known as the "accrued liability contribution." The rate 

133 



§ 61-67 Code of Laws of South Carolina § 61-69 

per cent of such contributions shall be fixed on the basis of the liabilities of 
the System as shown by actuarial valuation. 
1945 (44) 212; 1949 (46) 424. 

§61-67. Normal contribution rate. 

On the basis of regular interest and of such mortality and other tables as 
shall be adopted by the Board, the actuary engaged by the Board to make 
each annual valuation during the period over which the accrued liability 
contribution is payable, immediately after making such valuation, shall de- 
termine the uniform and constant percentage of the earnable compensation 
of the average new entrant throughout his entire period of active service which 
would be sufficient to provide for the payment of any employer annuity pay- 
able on his account. The rate per cent so determined shall be known as the 
"normal contribution rate." After the accrued liability contribution has ceased 
to be payable, the normal contribution rate shall be the rate per cent of the 
earnable compensation of all members obtained by deducting from the total 
liabilities of the Employer Annuity Accumulation Fund the amount of the 
funds in hand to the credit of that account and dividing the remainder by 
one per cent of the present value of the prospective future earnable compensa- 
tion of all members as computed on the basis of the mortality and service 
tables adopted by the Board and regular interest. The normal rate of con- 
tribution shall be determined by the actuary after each valuation. 

1945 (44) 212; 1949 (46) 424. 

§ 61-68. Accrued liability contribution rate. 

The rate per cent determined immediately after the first valuation by the 
actuary engaged by the Board as the rate per cent of the total annual earn- 
able compensation of all members which is equivalent to four per cent of 
the amount of the total employer annuity liability on account of all mem- 
bers and beneficiaries which is not dischargeable by the aforesaid normal 
contribution made on account of such members during the remainder of their 
active service shall be known as the "accrued liability contribution rate." 

1945 (44) 212; 1949 (46) 424. 

§ 61-69. Minimum contributions to Employer Annuity Accumulation Fund. 

The total amount payable in each year by each employer for credit to the 
Employer Annuity Accumulation Fund shall not be less than the sum of the 
rate per cent known as the normal contribution rate and the accrued liability 
contribution rate of the total earnable compensation of all members during 
the preceding year. The amount of each annual accrued liability contribution 
shall be at least three per cent greater than the preceding annual accrued lia- 
bility payment and the aggregate payment by employers shall be sufficient, 
when combined with the amount in said fund, to provide the employer annu- 
ities and other benefits payable out of the fund during the year then current. 

1945 (44) 212; 1949 (46) 424. 



134 



§61-70 Retirement Systems §61-75 

§ 61-70. Discontinuance of accrued liability contribution. 

The accrued liability contribution shall be discontinued as soon as the ac- 
cumulated reserve in the Employer Annuity Accumulation Fund shall equal 
the present value, as actuarily computed and approved by the Board, of the 
total liability of such fund less the present value, computed on the basis of 
the normal contribution rate then in force, of the prospective normal con- 
tributions to be received on account of all persons who are at the time members. 

1945 (44) 212; 1949 (46) 424. 

§ 61-71. Payments from Employer Annuity Accumulation Fund. 

All employer annuities, and benefits in lieu thereof, with the exception of 
those payable on account of members who received no prior service credit, 
shall be paid from the Employer Annuity Accumulation Fund. 

194S (44) 212; 1949 (46) 424. 

§ 61-72. Obligations of Employer Annuity Accumulation Fund. 

The maintenance of employee annuity reserves and employer annuity re- 
serves as provided for hereunder and regular interest creditable to the various 
funds as provided in this article and the payment of all annuities, retirement 
allowances, refunds and other benefits granted hereunder are hereby made 
obligations of the Employer Annuity Accumulation Fund. All income, inter- 
est and dividends derived from deposits and investments authorized hereunder 
shall be used for the payment of such obligations of said fund. 

1949 (46) 424. 

§ 61-73. Transfer between funds on retirement. 

Upon the retirement of a member not entitled to credit for prior service, an 
amount equal to the then reserve for his employer annuity shall be transferred 
from the Employer Annuity Accumulation Fund to the Employer Annuity 
Reserve Fund. 

194S (44) 212; 1949 (46) 424. 

§ 61-74. Transfers on advice of actuary. 

The Board may in its discretion, upon the advice of the actuary, transfer 
to or from the Employer Annuity Accumulation Fund the amount of any 
surplus or deficit which may develop in the reserves recorded in the Employee 
Annuity Reserve Fund or the Employer Annuity Reserve Fund. 

1949 (46) 424. 

§ 61-75. Earnings credited to Employer Annuity Accumulation Fund. 

All interest and dividends earned on the invested assets of the System shall 
be credited to the Employer Annuity Accumulation Fund. The Board shall 
credit regular interest to the individual accounts of members in the Em- 
ployee Annuity Savings Fund, shall credit regular interest at the end of 
each fiscal year on the mean amounts for such year in the Employee An- 
nuity Reserve Fund and the Employer Annuity Reserve Fund and shall trans- 
fer the amounts of such credits from the Employer Annuity Accumulation 

135 



§ 61-76 Code of Laws of South Carolina § 61-78 

Fund. Any interest credited to the individual account of a member in the 
Employee Annuity Savings Fund and not payable to him under the provisions 
of §61-114 upon his ceasing to be a teacher or employee except by death or 
retirement shall be transferred from said fund to the Employer Annuity Ac- 
cumulation Fund. 

1945 (44) 212; 1949 (46) 424. 

§ 61-76. Payments to System and prior service credits of persons in military 
service, etc. 

Subject to the approval of the Board, any member who is on leave of 
absence on account of military service or for any other purpose which might 
tend to increase the efficiency of the services of the member to his em- 
ployer may make monthly contributions to the System on the basis of the 
earnable compensation of such member at the time such leave of absence was 
granted. Any person on leave of absence in the armed forces of the United 
States who would otherwise have qualified for prior service credit shall be 
entitled to prior service credit if he returns to the service of teaching or any 
other employment covered by or coming within the meaning hereof within 
a period of two years after he has been honorably discharged. 

1945 (44) 212; 1949 (46) 424. 

§ 61-77. Employer Annuity Reserve Fund. 

The Employer Annuity Reserve Fund shall be the account in which shall 
be recorded the reserves on all employer annuities granted to members not 
entitled to prior service credit and against which such employer annuities and 
benefits in lieu thereof shall be charged. Should such a beneficiary retired on 
account of disability be restored to active service and again become a member 
under the provisions of § 61-109 the then reserve for his employer annuity 
shall be transferred from the Employer Annuity Reserve Fund to the Employ- 
er Annuity Accumulation Fund. Should the employer annuity of such a dis- 
ability beneficiary be reduced under the provisions of §61-108 the amount of 
the annual reduction in his employer annuity shall be transferred annually 
into the Employer Annuity Accumulation Fund during the period of such re- 
duction. 

1945 (44) 212; 1949 (46) 424. 

§ 61-78. Collection of members' contributions. 

The collection of members' contributions shall be as follows: each employer 
shall cause to be deducted on each and every payroll of a member the con- 
tributions payable by such member as provided herein and the chief fiscal 
officer of each employer shall draw his warrant for the amount so deducted, 
payable to the South Carolina Retirement System, and shall transmit such 
warrant together with a schedule of the contributions on such forms as shall 
be prescribed by the Board, prior to the expiration of fifteen days after each 
such deduction. If any employer shall fail so to do or arrears should at 
any time exist in making monthly payrolls and remittances as required 

136 



§ 61-79 Retirement Systems § 61-80 

hereunder and by the rules and regulations of the Board, the monthly com- 
pensation of any person or officer of any employer charged with the re- 
sponsibility of making monthly payroll reports and remittances to the Sys- 
tem shall be withheld by the employer in each and every instance of failure 
to make such reports and remittances until all reports and remittances re- 
quired hereunder and by the rules and regulations of the Board shall have 
been made. The System shall furnish monthly to the disbursing officers of 
each employer a statement of any failure to make payroll reports and re- 
mittances and the names of the persons or officers failing to make such reports 
and remittances. 

Failure by any person to transmit in the manner herein required the con- 
tributions deducted prior to the expiration of the fifteen day period aforesaid 
shall be a misdemeanor and shall be punished by fine or imprisonment or both 
in the discretion of the court. 

1945 (44) 212; 1949 (46) 424; 1951 (47) 518. 

§ 61-79. Collection of employers' contributions. 

The collection of employers' contributions shall be made as follows: 

(1) Upon the basis of each actuarial valuation provided herein the Board 
shall annually prepare and certify to each employer a statement of the total 
amount payable by such employer for the ensuing fiscal year to the Employer 
Annuity Accumulation Fund and such amount shall be handled and disbursed 
in accordance with the usual appropriations ; 

(2) The chief fiscal officer of each employer shall transmit on or prior to the 
last day of each month to the System on account of each employee who is a 
member of the System an amount sufficient to cover the normal contribution 
and the accrued liability contribution of each member employed by such em- 
ployer for the preceding month ; and 

(3) If within ninety days after request therefor by the Board any em- 
ployer shall not have provided the System with the records and other in- 
formation required hereunder or if the full accrued amount of the contribu- 
tions provided for under this section clue from members employed by an 
employer or from an employer other than the State shall not have been re- 
ceived by the System from the chief fiscal officer of such employer within 
thirty days after the last due date as herein provided, then, notwithstanding 
anything herein or in the provisions of any other law to the contrary, upon 
notification by the Board to the State Treasurer and Comptroller General 
as to the default of such employer as herein provided, any distributions 
which might otherwise be made to such employer from any funds of the 
State shall be withheld from such employer until notice from the Board to 
the State Treasurer that such employer is no longer in default. 

1945 (44) 212; 1949 (46) 424. 

§ 61-80. Deductions and employer contributions for teachers. 

The deductions authorized hereunder from the earnable compensation of 
teachers, the payments by employers of teachers of the required percentages 
of earnable compensation and all retirement allowances or other benefits here- 

137 



§ 61-91 Code of Laws of South Carolina § 61-101 

in provided shall be calculated upon the full earnable compensation of teachers 
from public funds derived from any source and all employers' contributions 
for teachers shall be paid by the State. 
1945 (44) 212; 1949 (46) 424. 

Article 6. 
Management oj Funds. 

§61-91. Board to control. 

The Board shall be the trustee of the funds of the System, may invest 
and reinvest such funds, subject to all the terms, conditions, limitations and 
restrictions imposed by the laws of this State upon the investment of State 
sinking funds, and, subject to like terms, conditions, limitations and restric- 
tions, may hold, purchase, sell, assign, transfer and dispose of any of the 
securities and investments in which any of the funds created herein shall 
have been invested, as well as the proceeds of such investments and any 
moneys belonging to such funds. 

1945 (44) 212; 1949 (46) 424. 

§ 61-92. Custody and disbursement of funds. 

The State Treasurer shall be the custodian of the funds of the System. All 
payments from such funds shall be made by him only upon vouchers signed 
by two persons designated by the Board. 

1945 (44) 212; 1949 (46) 424. 

§61-93. Cash to be kept available. 

For the purpose of meeting disbursements for annuities and other payments 
there may be kept available cash, not exceeding ten per cent of the total funds 
of the System, on deposit with the State Treasurer. 

1945 (44) 212; 1949 (46) 424. 

§ 61-94. Use of funds, etc., by Board members or employees prohibited. 

Except as otherwise herein provided, no member of or person employed by 
the Board shall have any direct interest in the gains or profits of any invest- 
ment made by the board. No board member or employee of the board shall, 
directly or indirectly, for himself or as an agent in any manner use the funds 
of the board except to make such current and necessary payments as are 
authorized by the Board. Nor shall any member or employee of the board 
become an endorser or surety or in any manner an obligor for moneys loaned 
or borrowed from the board. 

1945 (44) 212; 1949 (46) 424. 

Article 7. 
Retirement and Retirement Benefits. 

§ 61-101. Retirement at age sixty or after thirty-five years service. 

Any member in service may retire upon written application to the Board, 
setting forth at what time, not less than thirty days nor more than ninety 
days subsequent to the execution and filing thereof, he desires to be retired, 

138 



§61-102 Retirement Systems §61-105 

if such member at the time so specified for his service retirement shall have 
attained the age of sixty years or shall have thirty-five or more years of 
creditable service and notwithstanding that, during such period of notification, 
he may have separated from service. 
1945 (44) 212; 1949 (46) 424. 

§ 61-102. Retirement of teachers at sixty-five ; exceptions. 

Any teacher in service who has attained the age of sixty-five years shall 
be retired forthwith except that (a) if he attains that age during any scholastic 
term he may continue in service until the completion of that scholastic year 
and (b) with the approval of the employing authority, from year to year, he 
may continue in service until he has reached the age of seventy-two. 

1945 (44) 212; 1949 (46) 424; 1950 (46) 1922, 2446. 

§ 61-103. Retirement at seventy. 

Any employee in service who has attained the age of seventy years shall 
be retired forthwith, except that : 

(1) With the approval of his employer he may remain in service until the 
end of the year following the date on which he attains the age of seventy 
years ; and 

(2) With the approval of his employer and the Board he may, upon his re- 
quest therefor, be continued in service for a period of one year following each 
such request until such employee has reached the age of seventy-two years. 

This section shall not apply to persons holding elective offices and no person 
shall be required to retire until the end of the term of office to which he may 
have been appointed. 

1945 (44) 212; 1949 (46) 424. 

§ 61-104. Disability retirement. 

Upon the application of a member in service or of his employer, any mem- 
ber who has had ten or more years of creditable service may be retired by the 
Retirement Board not less than thirty days and not more than ninety days 
next following the date of filing such application on a disability retirement al- 
lowance if the Medical Board, after a medical examination of such member, 
shall certify that such member is mentally or physically incapacitated for 
the further performance of duty, that such incapacity is likely to be permanent 
and that such member should be retired. 

1945 (44) 212; 1949 (46) 424. 

§ 61-105. Service retirement allowance. 

Upon retirement from service a member shall receive a service retirement 
allowance which shall consist of: 

(1) An employee annuity which shall be the actuarial equivalent of his 
accumulated contributions at the time of his retirement; 

(2) An employer annuity equal to the employee annuity allowable at the 
age of sixty-five years or at age of retirement, whichever is less, computed on 
a basis of contributions made prior to the age of sixty-five years ; and 

139 



§61-106 Code of Laws of South Carolina §61-108 

(3) If he has a prior service certificate in full force and effect, an additional 
employer annuity which shall be equal to the employee annuity which would 
have been provided at age sixty-five or at age of retirement, whichever is less, 
by twice the contributions which he would have made during his entire 
period of prior service had the System been in operation and had he contrib- 
uted thereunder during such entire period. 

1945 (44) 212; 1949 (46) 424. 

§ 61-106. Allowance upon retirement for disability. 

Upon retirement for disability a member shall receive a service retirement 
allowance if he has attained the age of sixty years or has thirty-five or more 
years of creditable service. Otherwise he shall receive a disability retirement 
allowance which shall consist of: 

(1) An employee annuity which shall be the actuarial equivalent of his ac- 
cumulated contributions at the time of retirement ; and 

(2) An employer annuity equal to seventy-five per cent of the employer 
annuity that would have been payable upon service retirement at the earliest 
date he would have been eligible therefor had he continued in service to such 
date without further change in compensation. 

1945 (44) 212; 1949 (46) 424. 

§ 61-107. Re-examination of beneficiaries retired on account of disability. 

Once each year during the first five years following the retirement of a 
member on a disability retirement allowance and once in every three year 
period thereafter the Board may, and upon his application shall, require 
any disability beneficiary who has not yet attained the age of sixty years 
to undergo a medical examination, such examination to be made at the place 
of residence of such beneficiary or other place mutually agreed upon by a 
physician or physicians designated by the Board. Should any disability bene- 
ficiary who has not yet attained the age of sixty years refuse to submit to at 
least one medical examination in any such year by a physician or physicians 
designated by the Board his employer annuity may be discontinued until his 
withdrawal of such refusal and should his refusal continue for one year all 
his rights in and to his employer annuity may be revoked by the Board. 

1945 (44) 212; 1949 (46) 424. 

§ 61-108. Effect of ability to engage in gainful occupation. 

Should the Medical Board report and certify to the Board that such dis- 
ability beneficiary is engaged in or is able to engage in a gainful occupation 
paying more than the difference between his retirement allowance and 
his average final compensation and should the Board concur in such report, 
then the amount of his employer annuity shall be reduced to an amount 
which, together with his employee annuity and the amount earnable by 
him, shall equal the amount of his average final compensation. Should his 
earning capacity be later changed, the amount of his employer annuity may be 
further modified; provided that the new employer annuity shall not exceed the 
amount of the employer annuity originally granted nor an amount which, when 

140 



§61-109 Retirement Systems §61-111 

added to the amount carnable by the beneficiary together with his employee 
annuity, equals the amount of his average final compensation. 
1945 (44) 212; 1949 (46) 424. 

§ 61-109. Effect of restoration to service. 

A beneficiary restored to active service at a salary less than his average final 
compensation shall not become a member of the System and his employer 
annuity shall be adjusted in accordance with the provisions of § 61-108. 

Should a disability beneficiary under the age of sixty years be restored to 
active service and his compensation then, or at any time thereafter, be equal 
to or greater than his average final compensation at retirement, his retirement 
allowance shall cease, he shall again become a member of the System and he 
shall contribute thereafter at the same percentage rate that would be applica- 
ble to him had he not previously been retired. Any prior service certificate 
on the basis of which his service was computed at the time of his retirement 
shall be restored to full force and effect and, in addition, upon his subsequent 
retirement he shall be credited with all his service as a member; but should 
he be restored to active service on or after the attainment of the age of fifty 
years his employer annuity upon subsequent retirement shall not exceed the 
sum of the employer annuity which he was receiving immediately prior to his 
last restoration and the employer annuity that he would have received on ac- 
count of his service since his last restoration had he entered service at the time 
as a new entrant. 

1945 (44) 212; 1949 (46) 424. 

§ 61-110. Effect of temporary consultative employment. 

Any teacher or employee especially skilled in scientific knowledge and at- 
tainment may be temporarily employed by any part of the government or any 
agency thereof in a consultative capacity on a per diem compensation without 
such temporary consultative employment in any way affecting, reducing or 
canceling his retirement benefits but such temporary consultative employment 
shall not exceed four months in any one year. 

1945 (44) 212; 1949 (46) 424. 

§61-111. Optional allowances. 

Until the first payment on account of a retirement allowance becomes nor- 
mally due, any member may elect, by filing with the Retirement System, to 
convert the retirement allowance otherwise payable on his account after re- 
tirement into a retirement allowance of equivalent actuarial value under one 
of the optional forms named below, the retirement allowance under option 
selected being due and payable on the date of retirement : 

Option 1. A reduced retirement allowance payable during the retired 
member's life, with the provision that at his death a lump sum equal in amount 
to the difference between his accumulated contributions at the time of his re- 
tirement and the sum of employee annuity payments made to him during his 
lifetime shall be paid to the person, if any, nominated by him by written desig- 

141 



§ 61-112 Code of Laws of South Carolina § 61-114 

nation duly acknowledged and filed with the Board, if such person survives 
him, otherwise to the retired member's estate; 

Option 2. A reduced retirement allowance payable during the retired mem- 
ber's life, with the provision that it shall continue after his death to and for 
the life of the beneficiary nominated by him by written designation duly ac- 
knowledged and filed with the Board at the time of retirement, if such person 
survives him ; or 

Option 3. A reduced retirement allowance payable during the retired mem- 
ber's life, with the provision that it shall continue after his death at one half 
the rate paid to him to and for the life of the beneficiary nominated by him by 
written designation duly acknowledged and filed with the Board at the time 
of retirement, if such person survives him. 

194S (44) 212; 1949 (46) 424. 

§ 61-112. Special benefits to teachers for service prior to July 1 1945. 

Teachers who retired between July 1 1940 and July 1 1945 under some other 
retirement or pension fund and who, at the time of their retirement, had taught 
for thirty-five years or more shall be eligible for all of the benefits provided 
under the System on the same terms and conditions that apply to teachers 
who retire after July 1 1945. The fact that any such teacher shall have re- 
ceived benefits after his retirement since July 1 1940 from or under any other 
retirement or pension fund shall not make such teacher ineligible to come 
under the provisions of this paragraph but no such teacher shall draw or 
receive benefits under the System when he is at the same time receiving bene- 
fits from or under any other retirement or pension fund and no such teacher 
shall be entitled to benefits under the System unless he filed application there- 
for prior to July 1 1949. 

Subject to the provisions of the preceding paragraph all teachers who prior 
to July 1 1945 shall have taught for a period of thirty-five years, regardless of 
whether they were employed on April 26 1945 or subsequently, shall be 
eligible to become members of the System and shall be entitled to all benefits 
therefrom, including prior service credit, provided that no benefits shall be 
payable prior to the date of application for membership. In the calculation of 
the thirty-five years, teaching in adult schools, night schools and schools for 
illiterates and work in public school libraries shall be deemed to be equivalent 
to teaching in public schools. 

1949 (46) 424. 

§ 61-113. How annuities payable. 

All employee and employer annuities shall be payable in equal monthly 
installments. 

1945 (44) 212; 1949 (46) 424. 

§ 61-114. Return of contributions or deferred retirement. 

Should a member cease to be a teacher or employee except by death or re- 
tirement, he shall be paid within six months after his demand therefor, but not 
less than ninety days after ceasing to be a teacher or employee, his total con- 

142 



§61-115 Retirement Systems §61-117 

tributions without interest. But if such a member has twenty or more years of 
creditable service and elects, prior to the time his membership would other- 
wise terminate, to leave his contributions in the System he shall, unless and 
until such contributions arc paid to him as herein provided prior to the attain- 
ment of age sixty, remain a member of the System and shall be entitled to 
receive a deferred retirement allowance commencing at age sixty computed 
like a service retirement allowance in accordance with § 61-105, except that the 
employee annuity shall be the actuarial equivalent at age sixty of the mem- 
ber's contributions with such interest credits thereon, if any, as shall be al- 
lowed by the Board. Should a member die before retirement, the amount 
of his accumulated contributions shall be paid to his estate or to such person 
as he shall have nominated by written designation, duly acknowledged and 
filed with the Board. 

1945 (44) 212; 1949 (46) 424. 

§ 61-115. Effect of change or error in records. 

Should any change or error in the records result in any member or bene- 
ficiary receiving from the System more or less than he would have been en- 
titled to receive had the records been correct, the Board shall correct such 
error and, as far as practicable, shall adjust the payment in such a manner 
that the actuarial equivalent of the benefit to which such member or beneficiary 
was correctly entitled shall be paid. 

1945 (44) 212; 1949 (46) 424. 

§ 61-1 16. Exemption from taxation and legal process ; assignment. 

The right of a person to an annuity or a retirement allowance or to the re- 
turn of contributions, an annuity or retirement allowance itself, any optional 
benefit or any other right accrued or accruing to any person under the pro- 
visions of this chapter and the moneys of the System created hereunder are 
hereby exempted from any State or municipal tax and exempted from levy 
and sale, garnishment, attachment or any other process whatsoever and shall 
be unassignable except as herein specifically otherwise provided. 

1945 (44) 212; 1949 (46) 424. 

§ 61-117. Credit of State not pledged for payments. 

All agreements or contracts with members of the System pursuant to any 
of the provisions of this chapter shall be deemed solely obligations of the Re- 
tirement System and the full faith and credit of this State and of its depart- 
ments, institutions and political subdivisions and of any other employer is not, 
and shall not be, pledged or obligated beyond the amounts which may be here- 
after annually appropriated by such employers in the Annual Appropriations 
Act, County Supply Acts and other periodic appropriations for the purposes 
of this chapter. 

1945 (44) 212; 1949 (46) 424. 



143 



§61-131 Code of Laws of South Carolina §61-134 

Article 8. 
Participation of Certain Counties. 

§ 61-131. Certain counties participate in System for employees and teachers. 

Aiken County, Colleton County, Darlington County and Lancaster County 
are members of the State Retirement System and have assumed all the ob- 
ligations of an employer under this chapter for their employees and teachers 
in their public schools for which retirement was not provided on April 1 1946 
in Aiken County, March 23 1946 in Colleton County, April 3 1946 in Darlington 
County and March 25 1946 in Lancaster County. In the case of teachers, said 
counties shall participate as an employer for all their teachers and for sup- 
plemental salaries paid to teachers and employees shall include all officers and 
employees of the county. Employees and teachers of said counties shall be 
entitled to all prior service credits. The participation of said counties shall 
continue from year to year hereafter. 

1946 (44) 144S, 1482, 1546, 1569. 

§ 61-132. Chesterfield and Laurens Counties participate for employees. 

Chesterfield County and Laurens County are members of the State Retire- 
ment System and have assumed all the obligations of an employer under this 
chapter for their employees for which retirement was not provided on May 9 
1947 in Chesterfield County or May 12 1947 in Laurens County. The term 
"employees" shall include all officers and employees of said counties. Em- 
ployees shall be entitled to all prior service credits of the State Retirement 
System. Said counties' participation shall continue from year to year here- 
after. 

1947 (45) 304, 476. 

§ 61-133. Payment of contributions ; tax therefor. 

The county auditor of each of the counties mentioned in §§ 61-131 and 61-132 
shall levy and the county treasurers shall collect each year a tax on all taxable 
property in the county in addition to all other taxes in a sufficient amount to 
pay the county's contribution to the State Retirement System except, in 
Colleton, Chesterfield and Laurens Counties, the employer's contributions for 
hospital employees which shall be paid from hospital funds. Each year, until 
the proceeds of the collection of such tax shall become available, the proper 
officers of any such county may pay such contributions from the county reserve 
fund or, in the case of Lancaster County, any county funds available, but such 
funds shall be reimbursed from the proceeds of collection of such taxes. In 
the event that any portion of the expense of employer's contribution by the 
county for teachers or employees should be assumed hereafter by the State, 
the tax levy and payments herein provided for shall be proportionately re- 
duced. 

1946 (44) 1448, 1482, 1546, 1569; 1947 (45) 304, 476. 

§ 61-134. Remittance of funds ; employees' deductions. 

The proper county officials of Aiken County and the county treasurers of the 

144 



§61-135 Retirement Systems §61-151 

other counties mentioned in §§ 61-131 and 61-132 shall remit periodically to the 
State Retirement System in accordance with law and the rules and regulations 
of the Board the amounts necessary to pay the county's employer's con- 
tribution. Officials of such counties may deduct from the salaries of all 
employees and teachers participating in the System sufficient sums for em- 
ployee contributions and remit them periodically to the System. 
1946 (44) 1448. 1482, 1546, 1569; 1947 (45) 304, 476. 

§ 61-135. Marlboro County participates. 

Marlboro County is a member of the State Retirement System and has as- 
sumed all the obligations of an employer under this chapter for its employees 
and teachers in its public schools for which retirement was not provided on 
March 28 1946. In the case of teachers, Marlboro County shall participate as 
an employer for all its teachers and for supplemental salaries paid to teachers 
and "employees" shall include all officers and employees of the county. Em- 
ployees and teachers shall be entitled to all prior service credits. Marlboro 
County's participation shall continue from year to year hereafter. Officials 
of the county may deduct from salaries of all employees and teachers par- 
ticipating in the System sufficient sums for employee contributions and remit 
them periodically to the System. 

1946 (44) 1524. 

Article 9. 

Participation of Greenville, Lee and Spartanburg Counties. 

§ 61-141. Payment of contributions by Greenville, Lee and Spartanburg Coun- 
ties. 

For the payment of the contributions to the System by the governing bodies 
of Greenville County, Lee County and Spartanburg County the governing bodies 
of said counties, respectively, shall issue a claim to the System payable from 
any ordinary county funds not otherwise appropriated. But contributions on 
behalf of the Spartanburg General Hospital, the Spartanburg T. B. Hospital 
and the Spartanburg County health department shall be made from funds of 
such respective institutions and department. This section shall not affect in 
any way the Retirement System as now operated for the teachers of Spartan- 
burg County. 

1947 (45) 210, 258, 287. 

Article 10. 
Participation by Fairfield and Oconee Counties. 

§ 61-151. Participation in System. 

Fairfield County and Oconee County are members of the System and have 
assumed all the obligations of employers under this chapter for their employees 
for whom retirement is provided. "Employees" shall include all officers and 
employees of said counties. Said counties' participation shall continue from 
year to year hereafter. 

1946 (44) 1533; 1947 (45) 192. 

[6 SC Code] — 10 145 



§61-152 Code of Laws of South Carolina §61-172 

§ 61-152. Remittance of funds; employees' deductions. 

The county treasurers of Fairfield and Oconee Counties shall remit periodical- 
ly from funds of the county to the System, in accordance with law and the 
rules and regulations of the State Budget and Control Board, amounts neces- 
sary to pay the employer's contributions. Officials of said counties may deduct 
from the respective salaries of the employees, other than those who have 
elected not to come under the retirement plan, the employee contributions 
required under this chapter and such deductions shall be remitted to the 
System in accordance with law and the rules and regulations of the Board. 

1946 (44) 1533; 1947 (45) 192. 

Article 11. 

Participation by Greenwood County. 

§ 61-161. Levy of taxes to pay contribution. 

The auditor of Greemvood County shall levy and the County Treasurer shall 
collect, each year hereafter, a tax on all taxable property in said county in 
addition to all other taxes in a sufficient amount to pay the county's contribu- 
tion to the System. 

1947 (45) 537. 

§ 61-162. Payment of contribution. 

The treasurer of said county shall remit periodically to the System in accord- 
ance with law and the rules and regulations of the Board amounts necessary 
to pay the county's employer's contribution. The officials of said county 
may deduct from the salaries of employees of the county participating in 
the System sufficient sums for the employee contributions and remit them 
periodically to the System. 

1947 (45) 537. 

Article 12. 
Participation by Newberry County. 

§ 61-171. Participation in System. 

Newberry County is a member of the System and has assumed all the obli- 
gations of an employer under this chapter for its employees for which re- 
tirement was not provided on April 1 1946. Employees shall include all 
officers and employees of the county. Employees shall be entitled to all prior 
service credits of the System. Newberry County's participation shall continue 
from year to year hereafter. 

1946 (44) 1568. 

§ 61-172. Remittance of funds ; employees' deductions. 

The county treasurer shall remit periodically to the System in accordance 
with law and the rules and regulations of the Board amounts necessary to 
pay Neivberry County's employer's contribution. Officials of the county may 
deduct from the salaries of all employees participating in the Retirement 

146 [6SCCode] 



§61-181 Retirement Systems §61-191 

System sufficient sums for employee contributions and remit them periodically 
to the System. 
1946 (44) 1568. 

Article 13. 
Participation by Pickens County. 

§ 61-181. Participation in System. 

Pickens County is a member of the System and has assumed all the obliga- 
tions of an employer under this chapter for its employees and vocational agri- 
cultural teachers in its high schools for which retirement was not provided on 
March 22 1946. In the case of vocational agricultural teachers Pickens County 
shall participate as an employer for that part of their salary paid to them by 
the county from the revenue derived from a millage levied for that purpose. 
The county treasurer shall transfer the proceeds from such millage to the 
county contingent fund and the county supervisor shall pay to such vocational 
agricultural teachers from such fund on the present basis in order that the 
vocational agricultural teachers may avail themselves of the benefits of the 
System. Employees and agricultural teachers shall be entitled to all prior 
service credits of the System. Pickens County's participation shall continue 
from year to year hereafter. 

1946 (44) 1428. 

§ 61-182. Levy of taxes to pay contributions. 

The auditor of Pickens County shall levy and the county treasurer shall 
collect each year a tax on all taxable property in the county in addition to all 
other taxes in a sufficient amount to pay Pickens County's contribution to the 
System. In the event that any portion of the expense of employer's contribu- 
tions by the county for vocational agricultural teachers or employees should 
be assumed hereafter by the State, the tax levy and payments herein provided 
for shall be proportionately reduced. 

1946 (44) 1428. 

§ 61-183. Remittance of funds ; deductions. 

The treasurer of Pickens County shall remit periodically to the System in 
accordance with the law and the rules and regulations of the Retirement Board 
amounts necessary to pay Pickens County's employer's contribution. Officials 
of the county may deduct from the salaries of all employees and teachers 
participating in the System sufficient sums for employee contributions and 
remit them periodically to the System. 

1946 (44) 142S. 

Article 14. 

Participation by Richland County. 

§61-191. Payment of contributions. 

The supervisor and the governing body of Richland County shall issue their 
claim to the Retirement System in payment of contributions by the county, 

147 



§ 61-191.1 Code of Laws of South Carolina § 61-201 

payable from any ordinary county funds not otherwise appropriated, and the 
county treasurer shall pay such claim. But contributions on behalf of the 
Columbia Hospital, the Columbia Township Auditorium and the Richland 
County Public Library shall be made from funds of those institutions. 
1945 (44) 292. 

§ 61-191.1. Payment from other retirement funds. 

The Teachers' Retirement Boards created under articles 4 and 5 of chapter 
5 of this Title may use existing retirement funds to provide for membership in 
the South Carolina Retirement System of teachers and employees who are not 
paid from State funds and to provide for membership on the basis of the total 
salary received of those teachers and employees who are paid in part from 
State funds. 

1945 (44) 292. 

§ 61-191.2. Eligibility for retirement. 

Teachers and other school employees in Richland County who are members 
of the South Carolina Retirement System shall be eligible for retirement on 
the basis of total salary received and the percentage of salary deductions and 
the percentage of contributions used by the State Retirement System for the 
State aid portion of such salary shall be applied to the total amount of salary 
received. That under the terms of this Act only such teachers or school 
employees who are not eligible for retirement under the terms of the South 
Carolina Retirement System shall be eligible for retirement under the terms 
of §§ 61-501 to 61-509, 61-511, 61-521 to 61-530 and 61-533. 

1945 (44) 292. 

§ 61-192. School boards are employers. 

All school boards of Richland County are hereby designated as employers 
under the terms of this chapter. 

1945 (44) 292. 

§ 61-193. Eligibility of teachers. 

Teachers and other school employees in Richland County who are members 
of the System shall be eligible for retirement on the basis of total salary re- 
ceived and the percentage of salary deductions and the percentage of con- 
tributions used by the System for the State aid portion of such salary shall be 
applied to the total amount of salary received. 

1945 (44) 292. 

Article 15. 

Participation by School Districts in York County. 

§ 61-201. Contributions on supplemental salaries of teachers. 

The trustees of any school district in York County may pay from the 
funds of such district to the Retirement System the premiums or contributions 
on any supplemental salaries paid to such teachers by such district, in addition 

148 



§ 61-202 Retirement Systems § 61-252 

to the State Aid received, to make such supplemental salaries available in 
computing the amount of salary received for retirement purposes. 
1946 (44) 1398. 

§ 61-202. Levy of taxes to provide funds. 

The auditor of York County shall levy and the county treasurer shall col- 
lect such taxes on the property within any such school district as may be 
necessary to provide the funds necessary to pay such premiums on the sup- 
plemental salaries so paid. 

1946 (44) 1398. 



CHAPTER 2. 
Retirement of Supreme Court Justices and Circuit Court Judges. 

Sec. 

61-251. When retirement permitted. 61-255. Failure to accept and authorize de- 

61-252. Retirement for disability. ductions bars benefits. 

61-253. Automatic retirement at seventy- 61-256. Retirement pay and payment there- 
two, of. 

61-254. Acceptance required for eligibility 61-257. Service after retirement; expenses. 

to benefits; salary deductions. 61-258. Practice of law after retirement. 

§ 61-251. When retirement permitted. 

Any justice of the Supreme Court or judge of the circuit courts may resign 
or retire from office when he : 

(1) Has served on the Supreme Court or on the circuit courts or on the 
Supreme Court and circuit courts combined for a period of twenty-five years; 

(2) Has served for a period of twenty years and reached the age of sixty- 
five years ; 

(3) Has served for a period of fifteen years and readied the age of seventy 
years ; or 

(4) Without regard to the age of such justice or judge, has served for seven 
years on the Supreme Court or circuit courts or on the Supreme Court and 
the circuit courts combined and while still in service thereon shall become 
totally and permanently disabled to carry on the duties of his office. 

1945 (44) 185. 

§ 61-252. Retirement for disability. 

No justice or judge shall be permitted to retire and resign on account of 
being totally and permanently disabled and to receive the retirement benefit 
herein provided for until it is proven to the satisfaction of the Supreme Court, 
or a majority of the justices thereof, that such justice or judge is totally and 
permanently disabled, physically or mentally, or both, from further rendering 
useful and efficient service as a justice or judge. Upon the finding of the 
Supreme Court that any justice or judge is totally and permanently disabled 
the Supreme Court shall notify the Governor of its findings and, upon receipt 

149 



§ 61-253 Code of Laws of South Carolina § 61-257 

of such notice and the resignation of the justice or judge, the Governor shall 
notify the State Treasurer and the Comptroller General of such retirement and 
the effective date thereof. 
1945 (44) 185. 

§ 61-253. Automatic retirement at seventy-two. 

Any justice of the Supreme Court or any judge of the circuit courts shall 
be automatically retired upon reaching the age of seventy-two years or, if he 
reaches such age while serving a term to which he was elected prior to July 
1 1945, upon the expiration of such term. 

1945 (44) 185, 502. 

§ 61-254. Acceptance required for eligibility to benefits; salary deductions. 

No justice or judge serving as such on April 24 1945 shall be eligible for the 
benefit of these retirement provisions unless he shall have, within thirty days 
after such date, notified the State Treasurer and the Comptroller General of 
his election to come under the retirement provisions of this chapter and in- 
structed the State Treasurer and the Comptroller General to deduct four 
per cent from each installment of his salary so long as he shall hold office. 
Any person who has subsequently qualified or may hereafter qualify as a jus- 
tice of the Supreme Court or circuit judge shall be entitled to the benefits of 
these retirement provisions upon giving the State Treasurer and Comptroller 
General, within 'thirty days after taking office, notice of his election to come 
under the provisions of this chapter and authorizing the State Treasurer and 
Comptroller General to deduct four per cent from each installment of his 
salary as long as he shall hold office. 

1945 (44) 185. 

§ 61-255. Failure to accept and authorize deductions bars benefits. 

Any justice or judge who does not elect to come under the provisions of this 
chapter and does not authorize and instruct the State Treasurer and Comp- 
troller General within the time specified in § 61-254 to make the deduction 
from his salary as provided therein shall forever be barred from enjoying and 
receiving the benefits of the retirement provided for in this chapter. 

1945 (44) 185. 

§ 61-256. Retirement pay and payment thereof. 

Any justice or judge resigning or retiring under the provisions of this chap- 
ter shall receive for the balance of his life three thousand dollars annually 
and the State Treasurer shall pay out of the funds in the State Treasury, on 
the warrant of the official authorized to approve payments of warrants for the 
salaries of the justices and judges, in monthly or semi-monthly installments, 
the amount provided herein. 

1945 (44) 185. 

§ 61-257. Service after retirement; expenses. 

Any retired justice or judge may be called upon and appointed by the Chief 

150 



§61-258 



Retirement Systems 



§61-301 



Justice of the Supreme Court to perform such judicial duties in the Supreme 
Court and circuit courts as such retired justice or judge may be willing and 
able to undertake. Any retired justice or judge so serving as acting associate 
justice or special circuit judge shall serve without pay except for his actual 
expenses while serving. 
1945 (44) 185; 1949 (46) 191. 

§ 61-258. Practice of law after retirement. 

No justice or judge while drawing retirement compensation shall engage in 
the practice of law if such practice shall involve appearing in the courts of 
this State before a jury, administrative tribunal or judge or shall involve 
appearing before the Supreme Court of this State. 

1945 (44) 185; 1948 (45) 1969. 



CHAPTER 3. 
Insurance and Annuity Benefits of Peace Officers. 



Sec. Sec. 

61-301. Peace officers defined. 61-314. 

61-302. Board of Commissioners of the 61-315. 
Police Insurance and Annuity 
Fund. 61-316. 

61-303. Same; membership, term and va- 61-317. 
cancies. 

61-304. Same; organization; employees; 

quorum. 61-318. 

61-305. Travel expense of employees of 61-319. 
Board. 61-320. 

61-306. Treasurer; bond; reports. 

61-307. Rules and regulations. 61-321. 

61-308. Gifts and grants. 

61-309. Payment of portion of fines and for- 61-322. 
feitures to Board. 

61-310. Amounts to be so paid. 61-323. 

61-311. Remittances of such portions and 61-324. 
enforcement thereof. 

61-312. Board to control and invest funds. 61-325. 

61-313. Membership in association pre- 
requisite tp eligibility for benefits. 



Use of membership dues. 

Reinstatement of servicemen of 
World War II. 

Disability benefits. 

Schedule of disability benefits ret- 
roactive; review of claims and. re- 
examination of beneficiaries. 

Retirement benefits. 

Death benefits. 

Proration of benefits when they 
cannot be paid in full. 

Disbursements; Board's decision 
final. 

Benefits subject to legislative 
changes. 

Records. 

Annual report; investigation of 
condition of fund. 

Perjury. 



§61-301. Peace officers defined. 

"Peace officers," as the term is used in this chapter, means all peace officers 
of the State or any subdivision thereof who receive their salaries from the 
State or any such political subdivision and who are required by the terms of 
their employment, whether by election or appointment, to give their time 
to the preservation of public order, the protection of life and property and 
the detection of crime in the State. 

1942 Code §3811-8; 1937 (40) 295; 1940 (41) 1709. 

The 1940 amendment was prospective. — amendment were meant to be prospective in 
Alterations to this section by the 1940 application and not retroactive. Powell v. 

151 



§ 61-302 Code of Laws of South Carolina § 61-304 

Board of Com'rs. of Police Ins. & Ann. uty sheriff was peace officer. — Where a 

Fund, 210 S. C. 136, 41 S. E. (2d) 780 deputy sheriff appointed under § 53-101, 

(1947). prior to the 1940 amendment to this section, 

One who performs duties of deputy sher- was refused benefits for disability by the 
iff is peace officer. — A deputy sheriff who Board of Commissioners on the ground that 
performed the usual duties of that office he was not a peace officer within the mean- 
but was paid and classified as "field man" ing of this provision, it was held that the 
for the "first deputy sheriff tax collector", doctrine of estoppel applied since the Board 
was held to be a peace officer within the had continued to receive payments from 
meaning of this section. Pulliam v. Board him after the 1940 amendment. Powell v. 
of Police Com'rs of Police Ins. & Ann. Board of Com'rs of Police Ins. & Ann. 
Fund, 202 S. C. 324, 24 S.E. (2d) 745 (1943). Fund, 210 S. C. 136, 41 S. E. (2d) 780 

And Board is estopped to deny that dep- (1947). 

§ 61-302. Board of Commissioners of the Police Insurance and Annuity Fund. 

In order to raise and manage funds for the granting of insurance and an- 
nuities to the peace officers of the State and to perform the duties imposed 
upon it by this chapter, there is hereby created a board to be known as the 
"Board of Commissioners of the Police Insurance and Annuity Fund of the 
State of South Carolina". 

1942 Code §3811; 1937 (40) 295. 

The State does not own the police insur- appears to be an incongruity of no legal 

ance and annuity fund or operate it, nor significance or result. Powell v. Board of 

ioin in or underwrite its liabilities. The Com'rs of Police Ins. & Ann. Fund, 210 S. 

administrators of the fund are not selected C. 136, 41 S. E. (2d) 780 (1947), holding 

by the State or any agency of it; the fact that the doctrine of estoppel applied to the 

that they are commissioned by the Governor Board of Commissioners. 

§ 61-303. Same ; membership, term and vacancies. 

Said Board shall consist of six members, one from each congressional dis- 
trict, who shall be elected by and from the membership of the South Carolina 
Peace Officers' Association, an eleemosynary institution, at an annual meet- 
ing of said association. The members of the Board shall be elected for terms 
of two years each and shall hold office until their successors are elected and 
commissioned by the Governor as provided herein. All vacancies on the 
Board shall be filled by the remaining members of the Board and the members 
so chosen shall hold office until the position is filled by a proper election of 
the South Carolina Peace Officers' Association at a regular annual meeting 
thereof. 

1942 Code §3811; 1937 (40) 295. 

Cross reference. — See note to § 61-302. 

§ 61-304. Same ; organization ; employees ; quorum. 

The organization of the Board shall be perfected by the selection from its 
members of a chairman, vice-chairman, secretary and treasurer and the 
Board may employ such other employees as in the opinion of the Board may 
be necessary to the proper handling of its business. The majority of the 
members of the Board shall constitute a quorum for the transaction of the 
business of the Board. 

1942 Code §3811-1; 1937 (40) 295. 

152 



§ 61-305 Retirement Systems § 61-309 

§ 61-305. Travel expense of employees of Board. 

When an employee of the Board shall use his automobile in travel for 
the transaction of necessary official business for the board, there shall be 
charged against the Board for the use of such automobile a rate mileage not 
exceeding four cents per mile for the actual distance traveled, if such em- 
ployee files with the claim his affidavit as to mileage, place and business at- 
tended to. All employees of the Board while traveling on necessary official 
business for the Board shall be paid at the rate of not more than three and 
one-half dollars per day as expenses, exclusive of transportation for travel 
away from their official headquarters. Employees of the Board traveling 
outside of the State on official business shall charge their actual expenses 
not to exceed six dollars per day, exclusive of transportation. It is further 
provided that all expense accounts for travel shall be submitted under oath, 
properly itemized and classified. 

1949 (46) 273. 

§ 61-306. Treasurer ; bond ; reports. 

The treasurer of the Board shall give good and sufficient surety in such an 
amount as may be determined by the Board and such surety bond shall be 
conditioned upon the proper and faithful performance of his duties as such 
treasurer and to indemnify the Board for any losses on account of defalca- 
tion or otherwise. The treasurer shall make quarterly reports to the Board 
showing the total amount of money in his hands at the time of the filing of 
the report and also showing a full accounting of receipts and expenditures 
since his last quarterly report. 

1942 Code §3812-4; 1937 (40) 295. 

§61-307. Rules and regulations. 

The Board may make all necessary rules and regulations for its govern- 
ment and for its employees in the proper discharge of their duties. 

1942 Code §3811-3; 1937 (40) 295. 

Cross reference. — For rules and regula- Insurance and Annuity Fund, in Volume 7 
tions promulgated under authority of this of this Code, 
section, see Rules and Regulations, Police 

§ 61-308. Gifts and grants. 

The Board may take by gift, grant, devise or bequest any money, real or 
personal property or other thing of value and hold or invest it for the uses 
of the fund in accordance with the purposes of this chapter. 

1942 Code §3811-6; 1937 (40) 295. 

§ 61-309. Payment of portion of fines and forfeitures to Board. 

In all criminal actions in the courts of this State wherein an appearance 
bond is forfeited and collected or a plea of guilty or nolo contendere is en- 
tered by the defendant or wherein the defendant is adjudged guilty by the 
court or by a jury and a fine is imposed and collected, a portion of the fine so 
imposed and collected and a portion of the appearance bond forfeited and 

153 



§61-310 Code of Laws of South Carolina §61-311 

collected shall be paid to the treasurer of the Board of Commissioners of the 
Police Insurance and Annuity Fund of the State of South Carolina. In the 
counties the person collecting such fines and forfeited bonds shall pay the 
portion due the treasurer of said Board to the county treasurer and he shall 
make payment to the treasurer of said Board as herein provided. In munici- 
palities the person collecting such fine or forfeited bond shall pay the portion 
due the treasurer of such Board to some officer designated by the municipality, 
unless, however, such designated officer be the person who collected such 
fine or forfeited bond and the person so designated shall make the payments 
to the treasurer of the Board as herein provided. 

1942 Code §3812; 1937 (40) 295; 1940 (41) 1709; 1949 (46) 273. 

The 1940 amendment was prospective. — 
See note to § 61-301. 

§61-310. Amounts to be so paid. 

Of the fines imposed and collected and the appearance bonds forfeited and 
collected in all counties of this State the portion to be paid to the treasurer 
of said Board of Commissioners of the Police Insurance and Annuity Fund 
shall be as follows: The sum of two dollars of each fine or forfeited bond 
collected when it is more than two dollars and does not exceed twenty dol- 
lars ; the sum of three dollars of each fine or forfeited bond collected when it 
is twenty dollars or more but does not exceed fifty-two dollars; and the sum 
of ten per cent of the fine or forfeited bond collected when it is more than 
fifty-two dollars. The money paid to the treasurer of said Board under the 
provisions of this section shall be paid on the last day of each calendar month 
for the preceding month. 

1942 Code §3812; 1937 (40) 295; 1940 (41) 1709; 1949 (46) 273. 

The 1940 amendment was prospective. — 
See note to §61-301. 

§ 61-311. Remittances of such portions and enforcement thereof. 

Each municipality by an officer designated by the municipality and each 
county by the county treasurer shall on or before the last day of each cal- 
endar month remit to the treasurer of said Board all moneys due it under 
the provisions of §§ 61-309 and 61-310 by virtue of fines and appearance bonds 
collected the preceding calendar month. Any municipality or county fail- 
ing to make any such remittance as above provided shall not be entitled to 
receive any funds collected by the State and payable to such municipality or 
county by the State from any source whatsoever as long as such munici- 
pality or county fails to make such remittance to the treasurer of said Board. 

No officer, commission or department of this State making remittances to 
counties and municipalities of this State shall make any remittance to any 
municipality or county which is not entitled to receive it under the provi- 
sions of this section. But such officer, commission or department shall not 
withhold such funds except after ten days written notice given by said 

154 



§61-312 Retirement Systems §61-315 

Board and whenever any county or municipality fails to make a remittance 

as herein provided said Board shall give such notice. 

1942 Code §3812; 1937 (40) 295; 1940 (41) 1709; 1949 (46) 273. 

The 1940 amendment was prospective. — 
See note to §61-301. 

§ 61-312. Board to control and invest funds. 

The Board shall have control over the funds derived from the provisions 
of this chapter and it shall continue to receive and require the deposit of 
them as received to the credit of the fund. The Board may invest the fund 
in interest-hearing bonds of the United States or of the State and its political 
subdivisions or it may in its discretion invest the fund in first mortgages 
on improved property worth twice the amount so loaned. Or the Board 
may invest the funds in other bonds deemed by it most advantageous to the 
proper preservation and increase of the fund. 

1942 Code §3811-2; 1937 (40) 295. 

§ 61-313. Membership in association prerequisite to eligibility for benefits. 

Peace officers who may be entitled to membership and who might become 
eligible to receive benefits under this chapter shall make application for mem- 
bership in the South Carolina Peace Officers' Association on blanks to be 
furnished for that purpose, giving such information as may be required by 
said association and shall pay to the association monthly dues of four dol- 
lars. 

1942 Code §3811-9; 1937 (40) 295; 1940 (41) 1709; 1949 (46) 273. 

The 1940 amendment was prospective. — 
See note to § 61-301. 

§ 61-314. Use of membership dues. 

No officer or employee of said Association shall be paid any salary from 
the proceeds of these annual dues, all of which shall be paid over to the 
treasurer of the Board and be used entirely for payment of benefits and insur- 
ance as provided in this chapter and for no other purposes. 

1942 Code § 3811-9; 1937 (40) 295; 1940 (41) 1709. 

§ 61-315. Reinstatement of servicemen of World War II. 

Any peace officer who served in the military service of the United States 
during World War II and who, at the time he entered such service, was a 
member of said association and was entitled to benefits under the provisions 
of this chapter shall be entitled to be reinstated as a member of said asso- 
ciation and as recipient of such benefits by payment of all dues for the period 
between the date such person entered such service and the date of his re- 
instatement if application for such reinstatement was made to said associa- 
tion in writing prior to December 7 1947 if such person received his 
discharge prior to April 1 1947 and within six months from the date of such 
discharge if such person received his discharge after April 1 1947. A person 
reinstated under the provisions of this section shall not be required to under- 
go a medical examination and any such person shall be entitled to have the 

155 



§ 61-316 Code of Laws of South Carolina § 61-316 

period of time between the date he entered such service and the date of his 
reinstatement credited to his term of years as a peace officer to the end 
that he shall not have lost any time of service as a peace officer by reason of 
such military service up to the time of his reinstatement. The "period of 
World War II" as herein used shall be construed to be the time between the 
date that the said war was declared to exist until the time when it was by 
proper authority declared to have ended. "Military service" as herein used 
shall be construed to mean service in the Army, the Navy, the Air Force, the 
Marine Corps and the Coast Guard of the United States. 
1947 (45) 239. 

§61-316. Disability benefits. 

Any peace officer becoming totally and permanently disabled after having 
served continuously for a period of one year or more as a peace officer in this 
State shall be entitled to be paid monthly as such disability continues, by the 
treasurer of the Board upon proper application being made therefor, a per- 
centage of the average monthly salary received by such officer over a period 
of two years immediately preceding the date of making such application, 
except that if such officer's service has been less than two years, then such 
percentage shall be a percentage of the average monthly salary received by 
such officer over his entire service period. Such percentage shall be based upon 
the number of years of continuous service rendered by the applicant as a 
peace officer of the State in accordance with the following scale: 

Years of 

Service Percentage Not to Exceed 

1 4% $ 5.00 

2 8% 10.00 

3 12% 15.00 

4 16% 20.00 

5 20% 25.00 

6 24% 30.00 

7 28% 35.00 

8 32% 40.00 

9 36% 45.00 

10 40% 50.00 

11 44% 55.00 

12 48% 60.00 

13 52% 65.00 

14 56% 70.00 

15 60% 75.00 

16 64% 80.00 

17 68% 85.00 

18 72% 90.00 

19 76% 95.00 

20 80% 100.00 

156 



§61-317 Retirement Systems §61-318 

In the foregoing table "Years of Service" means, for example, 1 year and 
less than 2 years, 2 years and less than 3 years, etc.; "Percentage" means per- 
centage of salary; and "Not to Exceed" means the maximum benefit to be 
paid per month. No benefit shall exceed one hundred dollars per month. 

1942 Code § 3S12-2; 1937 (40) 295; 1940 (41) 1709; 1945 (44) 170; 1949 (46) 273. 

The 1940 amendment was prospective.— there. It was held that considering the 

See note to § 61-301. question from the standpoint of the pri- 

Section 10-303 is not applicable to an ac- mary right of the plaintiff, the right was 

tion brought against the Board for disabil- based upon his official status as a peace 

ity benefits. This being an action against officer in Florence County and the per- 

a public officer or board, the venue thereof formance by him in Florence County of 

must be determined by the provisions of his official duties as such peace officer. 

§ 10-302. Baldwin v. Board of Com'rs of That official status, acquired and exercised 

Police Ins. & Ann. Fund, 196 S. C. 112, 12 by him in that county constituted his "pri- 

S. E. (2d) 846 (1941). mary right" to the benefits which would 

Venue is proper where duties are per- legally accrue to him as a member of the 

formed. — In an action by a former peace police insurance and annuity fund. To that 

officer of Florence County for disability extent his cause of action arose in Flor- 

benefits under this section the Board con- ence County. Baldwin v. Board of Com'rs 

tended that the venue should be Richland of Police Ins. & Ann. Fund, 196 S. C. 112, 

County where the offices of the board were 12 S. E. (2d) 846 (1941). 
located and that the cause of action arose 

§61-317. Schedule of disability benefits retroactive; review of claims and 
re-examination of beneficiaries. 

The schedule of benefits set out in § 61-316 shall be applicable to all total and 
permanent disability recipients regardless of whether such recipient became 
permanently and totally disabled prior or subsequent to the effective date of 
the Act providing for such scale. But the Board may review any claim and 
call for re-examination of all or any of the disability beneficiaries of the fund. 
Any such examination shall be made in the county of the residence of the bene- 
ficiary by a physician designated by the Board and at the expense of the Board. 

1949 (46) 273. 

§61-318. Retirement benefits. 

Upon a proper application being presented upon a form to be prescribed 
by the Board for annuity benefits and upon such application having been 
properly passed on and favorably granted, the treasurer of the Board shall 
pay monthly: 

(1) The sum of sixty per cent of the average monthly salary received by 
the applicant over a six months period immediately prior to making appli- 
cation therefor if the applicant has had twenty years service as a peace of- 
ficer in this State ; 

(2) The sum of seventy per cent of the average monthly salary received 
by the applicant over a six months period immediately prior to making such 
application therefor if the applicant has served twenty-five years in this 
State as a peace officer ; and 

(3) The sum of eighty per cent of the average monthly salary received 
by the applicant over a six months period immediately prior to making ap- 

157 



§ 61-319 Code of Laws of South Carolina § 61-320 

plication therefor if the applicant has had thirty years service as a peace officer 
in this State. 

No person shall receive benefits hereunder unless he files his application 
within one year from the time of termination of his official duties as a peace 
officer in the State and is fifty-five years of age at the time the annuity is 
granted. In no case shall the annuity payable under this section exceed the 
sum of one hundred dollars per month and no person shall receive benefits 
under this section until he has terminated his service permanently as a peace 
officer in the State. 

1942 Code §3812-1; 1937 (40) 295; 1940 (41) 1709; 1945 (44) 170. 

The 1940 amendment was prospective. — 
See note to § 61-301. 

§61-319. Death benefits. 

Any peace officer having served continuously as an active peace officer in 
the State for a period of at least one year shall be issued a certificate whereby 
the Board will agree to pay a sum of money to a designated beneficiary upon 
the death of such officer. The amount agreed to be paid shall be based upon 
the number of years of continuous service rendered by the officer as a peace 
officer in the State as follows, to wit : 

(1) For continuous service of one year or more but less than two years, the 
sum of two hundred dollars ; 

(2) For continuous service of two years or more but less than three years, 
the sum of four hundred dollars ; 

(3) For continuous service of three years or more but less than four years, 
the sum of six hundred dollars ; 

(4) For continuous service of four years or more but less than five years, 
the sum of eight hundred dollars ; and 

(5) For continuous service of five years or more, the sum of one thousand 
dollars. 

No amount shall be paid upon the death of such officer unless at that time 
such officer is in active service as a peace officer in this State or is an annuitant 
under the provisions of this chapter. But an officer killed in the discharge of 
duty shall be eligible to the one thousand dollar death benefit regardless of 
the length of his service. 

1942 Code §3812-3; 1937 (40) 295; 1940 (41) 1709. 

The 1940 amendment was prospective. — Stated in Weston v. Board of Com'rs of 

See note to § 61-301. Police Ins. & Ann. Fund, 196 S. C. 491, 13 

S. E. (2d) 600 (1941). 

§ 61-320. Proration of benefits when they cannot be paid in full. 

In case the amount derived from the different sources mentioned and in- 
cluded in this chapter shall not be sufficient at any time to enable the Board to 
pay each person entitled to the benefits thereof in full the insurance granted 
or annuity allowed, then an equitably graded percentage of such monthly 
payment or payments shall be made to each beneficiary until the fund shall 

158 



§61-321 Retirement Systems §61-325 

be replenished sufficiently lo warrant the resumption thereafter of such in- 
surance or annuity pay to each of such beneficiaries. 
1942 Code §3811-7; 1937 (40) 295. 

§ 61-321. Disbursements; Board's decision final. 

The Board shall have control of all payments to be made from the fund. 
"It shall hear and decide all applications for insurance and annuities created and 
allowed under this chapter and its decision thereon shall be final and conclu- 
sive and not subject to review or reversal except by the Board itself. 
1942 Code §3811-3; 1937 (40) 295. 

§ 61-322. Benefits subject to legislative changes. 

All rights and benefits provided herein shall be subject to future legislative 
change or revision and no beneficiary shall be deemed to have any vested right 
thereto. 

1942 Code §3812-5; 1937 (40) 295. 

Limitation on subsequent legislation. — the benefits might be subsequently raised 

In Powell v. Board of Com'rs of Police or lowered by legislative change, the 

Ins. & Ann. Fund, 210 S. C. 136, 41 S. E. amounts being "the rights and benefits" re- 

(2d) 780 (1947), the lower court construed ferred to in this section. The Supreme 

this section to mean not that a member Court neither adopted nor rejected this 

could be completely dislodged by subse- construction but affirmed the lower court 

quent legislation but that the amounts of on another ground. 

§ 61-323. Records. 

The Board shall cause to be kept a record of all of its meetings and pro- 
ceedings. There shall also be kept in the office of the Board by the secre- 
tary, records which shall give a complete history and record of all actions of 
the Board in granting insurance and annuities. Such records shall give the 
name, date of the beginning of service as a peace officer and of incapacity and 
the reason therefor. All records, papers and other data shall be carefully 
preserved and turned over to the succeeding officers or Board members. 

1942 Code §3811-4; 1937 (40) 295. 

§ 61-324. Annual report ; investigation of condition of fund. 

On or before the 1st day of January of each year the Board shall make to 
the Governor and the General Assembly a verified report containing a state- 
ment of all receipts and disbursements, together with the name of each ben- 
eficiary and the amount paid to each beneficiary for or on account of the fund. 
Such detailed statement shall also include a statement of the investments 
made by the Board and the securities held in hand by it. The General As- 
sembly or the Governor may at any time make or cause to be made an exam- 
ination by a competent auditor of the condition of the fund. 

1942 Code §3811-5; 1937 (40) 295. 

§61-325. Perjury. 

Any person who shall wilfully swear falsely in any oath or affirmation for 
the purpose of retaining or procuring any insurance or annuities as herein 

159 



§ 61-325 



Code of Laws of South Carolina 



§ 61-325 



provided, or payment thereof, under the provisions of this chapter shall be 
guilty of perjury. 

1942 Code § 3811-3; 1937 (40) 295. 



CHAPTER 4. 
Firemen's Pension Funds in Certain Cities. 



Article 1. 

Cities of 14,000 or More but Less 
Than 20,000, 1930 Census. 
Sec. 

61-351. Authorized. 
61-352. Rules and regulations. 
61-353. Board of trustees; officers. 
61-354. Attorney. 
61-355. Gifts. 

61-356. Board's decision as to pensions con- 
clusive. 

Article 2. 

Cities From 20,000 to 50,000 Under 
Commission Form of Government. 

61-361. Establishment of fund. 

61-362. Board of trustees. 

61-363. Source of fund. 

61-364. Investment and disbursement of 
funds. 

61-365. Liability of city clerk and treasurer 
for improper use of fund. 

61-366. Who eligible for pensions or assis- 
tance. 

61-367. Who entitled to pensions or assis- 
tance. 

61-368. Board to pass on applications for 
pensions; records. 

61-369. Proration when fund insufficient to 
pay full benefits. 

61-370. Annual report. 

61-371. Restoration of payment if article 
unconstitutional. 

Article 3. 
Other Cities. 

61-381. Establishment of fund. 

61-382. Board of trustees and officers there- 
of. 

61-383. City attorney to represent board. 

61-384. Rules and regulations and decisions 
on applications. 

61-385. Investment of fund and custody of 
securities. 

61-386. Selection of depository. 

61-387. Payments by treasurer to fund. 

61-388. Sources of funds. 

61-389. Annual report of board. 



Sec. 

61-390. Record of proceedings. 

61-391. Interest on deposits or investments 
belongs to fund. 

61-392. Disbursement of funds. 

61-393. Only regular members eligible for 
pensions. 

61-394. When person thirty-five when em- 
ployed eligible for pension. 

61-395. Retirement after twenty-five years 
service. 

61-396. Same; in cities of 34,000 to 50,000, 
1940 census. 

61-397. Same; in cities over 70,000, 1940 cen- 
sus. 

61-398. Disability retirement. 

61-399. Disability retirement pension. 

61-400. Same; in cities of 34,000 to 50,000, 
1940 census. 

61-401. Same; in cities of more than 70,000, 
1940 census. 

61-402. Effect of demotion for political 
reasons. 

61-403. Funeral benefits. 

61-404. Proration of benefits when fund 
insufficient. 

61-405. Minimum fund prerequisite to pay- 
ment. 

61-406. Record of retired firemen. 

61-407. Fund and payments not subject to 
execution, etc. 

Article 4. 

Alternate Provision for Cities of 50,000 
to 70,000, 1940 Census. 

61-421. Establishment. 

61-422. Board of trustees and officers there- 
of. 

61-423. Rules and regulations and decisions 
on applications. 

61-424. Sources of fund. 

61-425. Payments by treasurer to fund. 

61-426. Investment of fund; custody of 
securities. 

61-427. Retirement after twenty-five years 
service. 

61-428. Retirement upon total disability. 

61-429. Disability pension. 



160 



§61-351 Retirement Systems §61-353 

Sec. Sec. 

01-430. Medical examinations after dis- 61-434. Not more than five members retired 

ability retirement. in one year. 
61-431. Pension ceases when pensioner 61-435. Discontinuance of service when not 

found no longer disabled. eligible for pension. 

61-432. Retirement for disability less than 61-436. When article effective in any city. 

total and permanent. 61-437. Provisions of article 3 applicable. 
61-433. Funeral benefits. 

Article 1. 
Cities of 14,000 or More but Less Than 20.000, 1930 Census. 

§ 61-351. Authorized. 

Any city in this State of not less than fourteen thousand inhabitants and 
not more than nineteen thousand nine hundred and ninety-nine inhabitants, as 
determined by the United States census of 1930, having a fire department, may 
in its discretion create or form a pension fund, create and select a board of 
trustees to manage such fund and raise funds for the pensioning of disabled 
and retired firemen of such city. Such authority hereby granted is permis- 
sive only and shall not be effective unless and until the city council of any 
such city shall by ordinance provide for the creation of such a fund and the 
adoption of rules and regulations to govern it. 

1942 Code §7531; 1940 (41) 1767. 

Cited in Shillito v. Spartanburg, 214 S. 
C. 11, 51 S. E. (2d) 95 (1948). 

§61-352. Rules and regulations. 

If any such city council in any such city shall determine by ordinance that 
such a fund shall be created, the city council of such city may by ordinance 
determine the rules, regulations, terms and conditions governing such fund 
and such council may from time to time by ordinance alter, amend or repeal 
any existing rule, regulation or condition and adopt new rules, regulations 
and conditions governing such fund as such council may from time to time 
deem wise or necessary. All such rules, regulations and conditions shall be 
consistent with the provisions of this article. 

1942 Code §7531; 1940 (41) 1767. 

§ 61-353. Board of trustees ; officers. 

When the city council of any such city shall determine to create such a 
fund, such council shall provide by ordinance for the creation and selection of 
a board of trustees to hold, manage and disburse the funds constituting 
such pension fund and such board may invest such fund in such securities 
as trustees generally are authorized by law to invest trust funds. Such 
board of trustees shall be composed of five members consisting of the chair- 
man of the board of fire-masters or the chairman of the fire committee of any 
such city, the city's chief of the fire department, its treasurer and two citizens 
of such city not connected with the city government, one of whom shall be 
appointed by the mayor of the city and the other by the chief of the fire de- 

[6 SC Code] — II 161 



§ 61-354 Code of Laws of South Carolina § 61-362 

partment thereof, both to be confirmed by the city council. The two citizens 
so appointed and confirmed shall serve for a period of four years and until 
their successors are nominated and confirmed. All members of such board 
of trustees shall serve without compensation. They shall elect from their 
members a chairman and a secretary, who shall likewise serve without com- 
pensation, and the treasurer of the city shall act as treasurer of the board 
and custodian of all funds and securities belonging to the fund. 
1942 Code §7531; 1940 (41) 1767. 

§ 61-354. Attorney. 

The city attorney or corporation counsel shall give advice to the board of 
trustees in all matters pertaining to their duties and the management of the 
firemen's pension fund whenever requested and he shall represent and defend 
the board as its attorney in all suits or actions at law or in equity that may 
be brought against it and bring all suits and actions in its behalf that may 
be required or determined upon by the board. 

1942 Code §7531; 1940 (41) 1767. 

§61-355. Gifts. 

The board of trustees may take by gift, devise, bequest or otherwise any 
money, real or personal property of any kind or other valuable thing as part 
of the pension fund. 

1942 Code §7531; 1940 (41) 1767. 

§ 61-356. Board's decision as to pensions conclusive. 

The board shall hear and decide all applications for pensions hereunder 
subject to such rules and regulations as may be from time to time adopted 
by the city council and not inconsistent with the provisions of this article, and 
the decision of the board on any and all questions of fact shall be final and 
not subject to review or reversal except by the board itself. 

1942 Code §7531; 1940 (41) 1767. 

Article 2. 
Cities From 20,000 to 50,000 Under Commission Form of Government. 

§61-361. Establishment of fund. 

In cities organized under the commission form of government with a pop- 
ulation of from twenty thousand to fifty thousand there is hereby created 
a firemen's pension fund, to be used and expended solely for the purpose of 
retiring members of the fire departments of such cities or assisting or pen- 
sioning disabled members of such departments. 

1942 Code §7658-1; 1940 (41) 1816. 

Stated in Shillito v. Spartanburg, 214 S. 
C. 11, 51 S. E. (2d) 95 (194S). 

§ 61-362. Board of trustees. 

Each such fund shall be administered by a board of trustees of the firemen's 

162 [6SCCode] 



§61-363 Retirement Systems §61-367 

pension fund, consisting of the mayor, the commissioner in charge of the fire 
department and the chief of the fire department, with the city clerk and 
treasurer as ex officio secretary and treasurer of such board of trustees, all 
of whom shall serve without compensation. The mayor shall be ex officio 
chairman and the commissioner in charge of the fire department ex officio 
vice-chairman of the board. The clerk and treasurer shall be custodian of 
the fund and keep the records and accounts of the receipts and disburse- 
ments. 

1942 Code §7658-1; 1940 (41) 1816. 

Stated in Shillito v. Spartanburg, 214 S. 
C. 11, SI S. E. (2d) 95 (1948). 

§ 61-363. Source of fund. 

In such cities there shall be paid into such fund monthly one per cent of 
the monthly salary and compensation of each member of the fire department. 
The board of trustees may take and receive gifts or bequests of money or any 
property of value and add them to, and administer them with, the fund. 

1942 Code §7658-1; 1940 (41) 1816. 

Stated in Shillito v. Spartanburg, 214 S. 
C. 11, 51 S. E. (2d) 95 (1948). 

§ 61-364. Investment and disbursement of funds. 

The board shall invest the funds in bonds of the United States or of this 
State or of cities within the class affected hereby. The funds shall be paid 
out only upon warrants duly approved by a majority of the board. 

1942 Code §7658-1; 1940 (41) 1816. 

§ 61-365. Liability of city clerk and treasurer for improper use of fund. 

The expenditure by the city clerk and treasurer of any portion of the afore- 
said fund for any other purpose than herein provided shall make him liable 
on his official bond. 

1942 Code §7658-1; 1940 (41) 1816. 

§ 61-366. Who eligible for pensions or assistance. 

All officers and regularly employed members of the fire department whose 
employment is regular and continuous, as opposed to occasional, casual or 
temporary, shall be deemed eligible to receive assistance or pension from the 
fund when duly adjudged entitled thereto. 

1942 Code §7658-1; 1940 (41) 1816. 

§ 61-367. Who entitled to pensions or assistance. 

The board may, upon sufficient medical evidence, retire upon a pension not 
exceeding one-half of his current salary any member who becomes unfit for 
duty if such disability is not occasioned by misconduct of such member, such 
pension or assistance to continue for the period of the disability. Any 
member who has a service record of twenty-five years may be retired by 

163 



§ 61-36S Code of Laws of South Carolina § 61-381 

the board and paid a pension of one-half of his current salary, to continue 
as long as he lives. 

1942 Code §7658-1; 1940 (41) 1816. 

§ 61-368. Board to pass on applications for pensions ; records. 

The board shall consider and decide all applications for pensions and shall 
act upon them within one month after any such application in writing is filed, 
keeping a permanent record of its meetings and proceedings which shall be 
open to public inspection at the office of the chief of the fire department. 

1942 Code §7658-1; 1940 (41) 1816. 

§ 61-369. Proration when fund insufficient to pay full benefits. 

Should available funds at any time be insufficient to pay the benefits to those 
who have become entitled to them in the full amount, there shall be a monthly 
pro-rata reduction of all monthly payments to obtain so long as the deficiency 
continues, which, however, shall later be made up when and if funds become 
available. 

1942 Code §7658-1; 1940 (41) 1816. 

§ 61-370. Annual report. 

The board shall annually make a detailed report of its receipts and dis- 
bursements to the city council which shall be a public record open to inspec- 
tion. 

1942 Code §7658-1; 1940 (41) 1816. 

§ 61-371. Restoration of payment if article unconstitutional. 

In the event that this article should be held unconstitutional all salary 
contributions made by the members of any such fire department shall be 
restored to the contributing members. 

1942 Code §7658-1; 1940 (41) 1816. 

Article 3. 

Other Cities. 

§61-381. Establishment of fund. 

In any city of this State not included in the terms of articles 1 and 2 of this 

chapter, having a fire department with one or more paid members, the city 

council may form a pension fund, create a board of trustees to manage such 

fund and raise funds for the pensioning of disabled and retired firemen of such 

cities. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

Constitutionality of former pension act. Const., Art. 3, § 32. Aetna Fire Ins. Co. 

—A 1906 act requiring payment of premi- v. Jones, 78 S. C. 445, 59 S. E. 148 (1907). 

urns to fire departments of incorporated This section was not repealed by the 1945 

cities by fire insurance companies doing act, but by its terms was amended. Taylor 

business in this State to create a fund for v. Marsh, 211 S. C. 36, 43 S. E. (2d) 606 

the benefit of firemen was held unconsti- (1947). 

tutional for not being uniform, for not being Cited in Shillito v. Spartanburg, 214 S. 

for a public purpose and for violating S. C. C. 11, 51 S. E. (2d) 95 (1948). 

164 



§61-382 Retirement Systems §61-386 

§ 61-382. Board of trustees and officers thereof. 

The board of trustees shall consist of five members, as follows: the chair- 
man of the board of fire commissioners or fire masters, the chief of the fire de- 
partment, the mayor of the city and two citizens, one to be appointed by the 
mayor and one to be appointed by the chief of the fire department, both to be 
confirmed by the city council and to hold office for such time as the city 
council may elect. The board shall select from their members a president 
and secretary and the city treasurer shall be ex officio treasurer of the board 
and custodian of the pension fund, but shall have no vote as a member of 
the board. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-383. City attorney to represent board. 

The city attorney or corporation counsel shall give advice to the board of 

trustees in all matters pertaining: to its duties and the management of the 

firemen's pension fund whenever thereunto requested and he shall represent 

and defend the board as its attorney in all suits or actions at law or in equity 

that may be brought against it and bring all suits and actions in its behalf that 

may be required or determined upon by the board. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-384. Rules and regulations and decisions on applications. 

The board of trustees of the firemen's pension fund shall make all needful 
rules .and regulations for its government in the discharge of its duties and 
shall hear and decide all applications for pensions under this article. Its de- 
cisions on such applications shall be final and conclusive and not subject to re- 
view or reversal except by the board. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-385. Investment of fund and custody of securities. 

The board of trustees may invest the pension fund in the name of the 

"Board of Trustees of the Firemen's Fund of the City of " 

in interest bearing bonds of the United States, the State or the city in which 

such board of trustees is in operation. All such securities shall be deposited 

by the treasurer with other securities of such city and shall be subject to the 

order of the board of trustees. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§61-336. Selection of depository. 

Upon the organization of a board of trustees of a firemen's pension fund 

hereunder such board shall, at its first meeting, select a bank or banks in such 

city in which all moneys shall be deposited by the treasurer of the board. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

165 



§61-387 Code of Laws of South Carolina §61-391 

§ 61-387. Payments by treasurer to fund. 

City councils of cities having boards of trustees of firemen's pension funds 
under this article shall ordain and order that the city treasurer pay into the 
pension fund, semi-annually at such dates as may be adopted by the respec- 
tive city councils, the amounts as levied, the treasurer to report them to the 
secretary of the board of trustees to be entered on the records of the board at 
its next meeting. The collection of the assessments under this article shall be 
liable to the same enforcement as any other taxes under the laws of this State. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-388. Sources of funds. 

The funds for such pension fund shall be raised as follows : 

(1) The board of trustees may take by gift, devise or bequest any money, 
real estate, personal property or other valuable things and pay them into the 
pension fund ; 

(2) All forfeitures and fines imposed upon any member of the fire depart- 
ment, by way of discipline, shall be paid into the pension fund ; 

(3) All proceeds from sales of condemned or discarded personal property 
and equipment in use in the department may be paid into the pension fund ; 
and 

(4) The city council of any city having a board of trustees under this 

article may levy and collect such taxes as may be necessary and appropriate 

such moneys as may be necessary to supplement and support such pension 

funds and may assess and collect from the salary of each member of the fire 

department an amount not in excess of three per cent of such salaries and 

pay such assessments into the pension fund. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-389. Annual report of board. 

The board of trustees shall make a report to the city council of the condi- 
tion of the pension fund within sixty days after the end of each fiscal year of 
the city. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-390. Record of proceedings. 

The board shall cause to be kept a record of all its meetings and proceed- 
ings. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-391. Interest on deposits or investments belongs to fund. 

In case the pension fund, or any part thereof, shall, by order of the board 
or otherwise, be deposited in any bank or invested as herein stated all interest 
or money which may be paid or agreed to be paid on account of such sums or 
deposit shall belong to and constitute a part of the fund. But nothing herein 

166 



§ 61-392 Retirement Systems § 61-396 

contained shall be construed as authorizing the treasurer to deposit such 

funds, or any part thereof, unless so authorized by the board. 

1942 Code §7532; 1932 Code §§ 7SS1 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. "12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-392. Disbursement of funds. 

All moneys ordered to be paid by the board of trustees shall be paid by the 
treasurer only upon warrants signed by the president of the board and coun- 
tersigned by the secretary thereof or, in the absence of either one or both of 
such officers, by the president and secretary pro tern, as may be appointed 
by the board of trustees at a meeting called for that purpose, and no warrant 
shall be drawn except by order of the board, duly entered in the records of 
the proceedings of the board. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 29S3; 1904 (24) 490; 1945 (44) 236. 

§ 61-393. Only regular members eligible for pensions. 

No person shall be entitled to receive any pension or other benefits from any 
such fund except a regularly paid member of a regularly organized fire de- 
partment and in accordance with the provisions herein contained. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-394. When person thirty-five when employed eligible for pension. 

No person who had or has attained thirty-five years of age upon first becom- 
ing regularly employed as a member of the fire department shall ever be 
eligible for any benefits under this article unless he has been regularly and 
continuously a volunteer member of the same department since he attained 
thirty-five years of age. 

1945 (44) 236. 

§ 61-395. Retirement after twenty-five years of service. 

Any fireman who has served in the fire department of the city or who has 
served in fire departments of one or more cities that come within the terms 
of this article for a period of twenty-five years shall, upon his written applica- 
tion, be retired and receive a monthly pension of one hundred dollars. But no 
fireman shall be required to so apply. This section shall also apply to those 
firemen retired prior to May 19 1947 either because of physical disability or 
otherwise. 

1942 Code ^7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236; 1946 (44) 1475; 1947 (45) 572. 

Cited in Shillito v. Spartanburg, 214 S. 
C. 11, 51 S. E. (2d) 95 (194S). 

§ 61-396. Same; in cities of 34,000 to 50,000, 1940 census. 

Notwithstanding the provisions of § 61-395, in cities having less than fifty 
thousand inhabitants and more than thirty-four thousand inhabitants, accord- 
ing to the 1940 United States census, such retired member shall receive from 

167 



§ 61-397 Code of Laws of South Carolina § 61-400 

the pension fund monthly an amount equal to one-half the monthly compensa- 
tion allowed to such member as salary at the date of such retirement. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236; 1947 (45) 572. 

§ 61-397. Same; in cities over 70,000, 1940 census. 

Notwithstanding the provisions of § 61-395 in cities having more than seven- 
ty thousand inhabitants according to the 1940 United States census such dis- 
abled or retired member of such fire department shall receive from the pension 
fund : 

(1) If he has performed faithful service in the department for a period of not 
less than fifteen years, an amount equal to one third of his monthly com- 
pensation as salary at the date of such retirement ; 

(2) If he has performed faithful service in the department for a period of 
not less than twenty-five years, an amount equal to one half of his monthly 
compensation as salary at the date of his retirement ; and 

(3) If he has performed faithful service in the department for a period of not 

less than thirty-five years, an amount equal to two thirds of his monthly 

compensation as salary at the date of his retirement. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236; 1947 (45) 572. 

§ 61-398. Disability retirement. 

Any member of the fire department of any such city having a pension fund 

who shall, while in the performance of his duties in such fire department and 

while responding to alarms of fire, become and be found, upon examination by 

a physician to be appointed by the city council of such city, to be physically 

or mentally disabled by reason of such service in such fire department, shall 

be retired from service in such fire department by the board of trustees of the 

firemen's pension fund upon the certificate of such physician and by a majority 

vote of the board. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236; 1947 (45) 572. 

§ 61-399. Disability retirement pension. 

Upon such retirement the board of trustees shall order the payment to 

such disabled or retired member of such fire department monthly from the 

pension fund of the sum of one hundred dollars a month. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236; 1946 (44) 236; 1947 (45) 572. 

This section is independent and complete pensions. Taylor v. Marsh, 211 S. C. 36, 
in itself as to the amount of the monthly 43 S. E. (2d) 606 (1947). 

§ 61-400. Same ; in cities of 34,000 to 50,000, 1940 census. 

Notwithstanding the provisions of § 61-399, in cities having less than fifty 
thousand inhabitants and more than thirty-four thousand inhabitants, accord- 
ing to the 1940 census of the United States, such disabled or retired member 

168 



§61-401 Retirement Systems §61-404 

of such fire department shall receive monthly from the pension fund a sum 

equal to one half the monthly compensation allowed to such member as salary 

at the date of such retirement. 

1942 Code §7532; 1932 Code §§ 7551 to 7506; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1947 (45) 572. 

§ 61-401. Same ; in cities of more than 70,000, 1940 census. 

Notwithstanding the provisions of § 61-399, in cities having more than sev- 
enty thousand inhabitants according to the 1940 United States census, such 
disabled or retired member of such fire department shall receive from the 
pension fund: 

(1) If he has performed faithful service in the department for a period of 
not less than fifteen years, an amount equal to one third of his monthly com- 
pensation as salary at the date of his retirement ; 

(2) If he has performed faithful service in the department for a period of not 
less than twenty-five years, an amount equal to one half of his monthly com- 
pensation as salary at the date of his retirement ; and 

(3) If he has performed faithful service in the department for a period of not 
less than thirty-five years, an amount equal to two thirds of his monthly com- 
pensation as salary at the date of his retirement. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236; 1947 (45) 572. 

§ 61-402. Effect of demotion for political reasons. 

Any person eligible for a pension under this article who has held the same 

position for five years with any department but who has been demoted for 

political reasons shall have his pension computed on the basis of the highest 

salary which he earned continuously for five years. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-403. Funeral benefits. 

Any regular member of such fire department, or any retired member after 

the completion of ten years regular service, shall be entitled to a funeral benefit 

to two hundred dollars upon death from any cause, such funeral benefit to be 

paid by the board of trustees from the pension fund to the nearest relative of 

such deceased fireman or pensioner. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. "12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-404. Proration of benefits when fund insufficient. 

If at any time, from any unforeseen cause, there shall not be sufficient 
money in any such pension fund to pa}' each person entitled to the benefit 
thereof the full amount per month as herein provided, then an equal percentage 
of such monthly payment shall be made to each beneficiary until the fund shall 
be replenished sufficiently to warrant the resumption of payment thereafter of 
full pension pay to each of such beneficiaries, unless the city council shall by 

169 



§ 61-405 Code of Laws of South Carolina § 61-421 

direct appropriation supplement the pension fund sufficiently to enable the 

board of trustees to pay the full amounts per month as herein provided. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-405. Minimum fund prerequisite to payment. 

No pensions or benefits shall be allowed, passed upon or paid by said board 
of trustees until there shall be in such pension fund at least one thousand 
dollars, exclusive of any anticipated tax, levy, appropriation or salary assess- 
ment. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-406. Record of retired firemen. 

There shall be kept in the office of the board of trustees by the secretary a 
book to be known as the list of retired firemen. This book shall give a full and 
complete history and record of all the actions of the board of trustees in retir- 
ing all persons under this article. Such record shall give names, dates of 
joining the department, dates of retirement and the reasons thereof, of all 
persons retired. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

§ 61-407. Fund and payments not subject to execution, etc. 

No portion of any such pension fund shall, either before or after an order 
for its distribution by the board to such disabled and pensioned members of the 
fire department, be held, taken, subjected to or retained or levied on by virtue 
of any attachment, execution, injunction, writ, interlocutory or other order 
or decree or any process or proceeding whatsoever issued out of or by any 
court in this State for the payment or satisfaction in whole or in part of any 
debt, damage, claim, demand or judgment against any member, but such fund 
shall be sacredly held, kept, secured and distributed for the purpose of pen- 
sioning the persons, or the payment of funeral expenses, as named in this 
article, and for no other purpose whatsoever. 

1942 Code §7532; 1932 Code §§7551 to 7566; Civ. C. '22 §§4658 to 4673; Civ. C. '12 
§§2968 to 2983; 1904 (24) 490; 1945 (44) 236. 

Article 4. 
Alternate Provision for Cities of 50,000 to 70,000, 1940 Census. 

§ 61-421. Establishment. 

In all cities of this State which by the 1940 United States census had not less 
than fifty thousand nor more than seventy thousand inhabitants, having a 
fire department with one or more paid members, the city council may adopt the 
provisions of this article and form a pension fund, create a board of trustees to 
manage such fund and raise funds for the pensioning of disabled and retired 
firemen of such city. 

1949 (46) 293. 

170 



§ 61-422 Retirement Systems § 61-424 

§ 61-422. Board of trustees and officers thereof. 

The board of trustees of any such fund shall consist of five members as 
follows: (a) the mayor of the city, (b) the councilman in charge of the fire 
department, (c) the chief of the fire department, who shall hold office until 
their successors in such respective offices shall have been elected and quali- 
fied, and (d) two members to be chosen from the fire department of the city, 
these representatives to be elected by a majority vote of the members of the fire 
department. Of the members first so elected one shall hold office for one year 
and one for a period of two years and thereafter one representative shall he 
elected each year for a term of two years. Any member shall be eligible to 
succeed himself. The board shall select from their members a secretary and 
the city treasurer shall be ex officio treasurer of the board and custodian of 
the fund, but shall have no vote as a member of the board. 

1949 (46) 293. 

§ 61-423. Rules and regulations and decisions on applications. 

The board of trustees of the firemen's pension fund shall make all needful 
rules and regulations for its government in the discharge of its duties and shall 
hear and decide all applications for pensions under this article. 

1949 (46) 293. 

§61-424. Sources of fund. 

The funds for such pension fund shall be raised as follows: 

(1) The board of trustees may take by gift, devise or bequest any money, 
real estate, personal property or other valuable things and pay them into the 
pension fund ; 

(2) All forfeitures and fines imposed upon any member of the fire depart- 
ment, by way of discipline, shall be paid into the pension fund ; 

(3) In each city in which a pension fund is set up under this article, the 
city shall cause to be deducted from the salary of each member covered by 
this article on each and every payroll of such employee and for each and every 
payroll period eight dollars per month from each and every employee covered 
by this article ; 

(4) The city shall also contribute a sum of money equal to the amount of 
money contributed by the employees as provided for in the preceding item; 

(5) The one per cent collected by the Insurance Commissioner of the State 
upon insurance written by foreign fire insurance companies doing business 
in any city coming under the provisions of this article, which amount is an- 
nually turned over to the municipality by the State Treasurer as provided 
for under the provisions of § 37-1164, shall be turned over by the city to the 
board of trustees and shall be used solely for the purposes mentioned here- 
in ; and 

(6) The city council may levy and collect such taxes as may be necessary 
to supplement and support such pension fund and may assess and collect from 
the salaries mentioned in item (3) of this section and pay such assessments 
into the pension fund. 

1949 (46) 293. 

171 



§ 61-425 Code of Laws of South Carolina § 61-428 

Cross reference. — As to sections concern- which are subject to this section, see § 37- 
ing firemen's insurance and inspection fund 1166.1. 

§ 61-425. Payments by treasurer to fund. 

City councils of cities having a board of trustees of a firemen's pension fund 
under this article shall ordain and order that the city treasurer pay into the 
pension fund, semiannually, at such dates as may be adopted by the city coun- 
cil, the amounts as levied. The treasurer shall report such payments to the 
secretary of the board of trustees to be entered on the records of the board at 
its next meeting. 

1949 (46) 293. 

§ 61-426. Investment of fund; custody of securities. 

The board of trustees may invest the pension fund in the name of the 

"Board of Trustees of the Firemen's Fund of the City of " 

in interest bearing bonds of the United States, this State or the city or school 
district in which such board of trustees is in operation. All such securities 
shall be deposited by the treasurer with other securities of the city and shall 
be subject to the order of the board of trustees. 

1949 (46) 293. 

§ 61-427. Retirement after twenty-five years service. 

Any member of the fire department may, as a matter of right, retire from 
active service if he shall have served twenty-five years in active service at the 
time of his retirement. When such member shall make application for retire- 
ment the board of trustees shall, after determining that he has the necessary 
years of service, order the payment to such retired member monthly from the 
pension fund a sum equivalent to fifty per cent of the average salary paid to 
members of the fire department, such average to be determined by taking the 
total monthly payroll of the fire department and dividing it by the total 
number of employees contributing to the pension fund. In no case, however, 
shall the basis of retirement be made on an average salary below two hundred 
dollars per month. The amount of retirement pay herein authorized shall 
be increased by one per cent of the average salary for each full year such 
member shall serve before retiring in excess of twenty-five years and not in 
excess of thirty-five years. Nothing in this article shall be interpreted to im- 
ply that any member must apply for retirement upon serving twenty-five years 
or more of active service in the fire department. 

1949 (46) 293. 

§ 61-428. Retirement upon total disability. 

Any member of the fire department of any city having a pension fund, who 
shall, while in the performance of his duties in the fire department, be injured 
or whose health shall become permanently impaired to such an extent as to 
render him totally disabled as a result of such service shall upon application 
be retired. The board of trustees shall have the applicant for a pension on 
account of permanent and total disability examined by competent physicians 

172 



§ 61-429 Retirement Systems § 61-432 

and/or surgeons. The board of trustees in passing upon the question of 
permanent and total disability may receive and consider the reports and rec- 
ommendations of such examining medical officers and the applicant may 
submit medical and other competent evidence on the question of his disability 
and right to be retired. If the board of trustees determines that the applicant 
is not totally and permanently disabled the act of the board shall be final ex- 
cept that such decision granting or refusing a pension shall be subject to re- 
view by a court of competent jurisdiction in an action at law as provided under 
the laws of the State. If the determination be that applicant is totally and 
permanently disabled he shall be retired subject to the conditions set forth in 
§§61-429 to 61-431. 
1949 (46) 293. 

§ 61-429. Disability pension. 

Upon such retirement the board of trustees shall order the payment to such 
disabled or retired member of such fire department monthly from the pension 
fund a sum equivalent to fifty per cent of the average salary paid to members 
of such fire department, such average to be determined by taking the monthly 
payroll of the fire department and dividing it by the total number of employees 
contributing to the pension fund. In no case, however, shall the basis of any 
such retirement pension be made on an average salary below two hundred 
dollars per month. 

1949 (46) 293. 

§ 61-430. Medical examinations after disability retirement. 

The board of trustees may at least once a year require a pensioner retired 
for total and permanent disability to submit to a medical examination for the 
purpose of determining whether or not the pensioner has sufficiently recovered 
from his disability to be able to return to his former position. 

1949 (46) 293. 

§ 61-431. Pension ceases when pensioner found no longer disabled. 

If the board, after any such medical examination after retirement for dis- 
ability, determines that the pensioner is not actually totally and permanently 
disabled but is able to return to the position of employment he occupied at 
the time of retirement and such employment and status as to position, pay 
and service credit is offered to such pensioner and he takes the former position 
or fails or refuses to take such offer, then the payment of such disability pen- 
sion shall cease. 

1949 (46) 293. 

§ 61-432. Retirement for disability less than total and permanent. 

The board of trustees with the approval of qualified medical authority may 
retire from the service of the fire department any member of the fire depart- 
ment who becomes unfit for fire duty or service but is not eligible for retire- 
ment under § 61-428 if such employee has completed not less than ten years 
service as a fire department employee. The amount of pension payable to such 

L73 



§61-433 Code of Laws of South Carolina §61-437 

retired employee who has served only ten years shall be ten twenty-fifths of 
the pension he would have received had he completed twenty-five years serv- 
ice and for each additional year that such retired employee shall have served 
(not in excess of a total of twenty-five years) such pension shall be increased 
by one twenty-fifth of the pension he would have received had he completed 
twenty-five years of service. 
1949 (46) 293. 

§61-433. Funeral benefits. 

Any member, after the completion of five years regular service, shall be 
entitled to a funeral benefit of two hundred dollars to be paid by the board of 
trustees from the pension fund to the nearest relative of such deceased fireman 
or pensioner. 

1949 (46) 293. 

§ 61-434. Not more than five members retired in one year. 

In order to insure stability of the pension fund, the board of trustees are di- 
rected that not more than five employees may be retired in any calendar year. 
Members requesting retirement shall be retired on a priority basis. Members 
retired because of injuries or disability in line of duty with most years service 
shall be first. 

1949 (46) 293. 

§ 61-435. Discontinuance of service when not eligible for pension. 

Should any member resign or leave the employ of the fire department for 
any cause, he shall have returned to him from the pension fund in full all 
money deducted from his salary and paid into the pension fund. In the event 
of the death of any member covered by the pension fund prior to retirement 
or disability as herein provided the full amount of all contributions and de- 
ductions made from the payroll for such member shall be paid to the widow, 
child or children of such deceased member and in the event such deceased 
member leaves no wife or children such amount shall be paid to his estate. 

1949 (46) 293. 

§ 61-436. When article effective in any city. 

The provisions of this article shall become effective in any municipality 
coming under its provisions when it has been adopted by a majority of the 
mayor and the city council of any such city. 

1949 (46) 293. 

§ 61-437. Provisions of article 3 applicable. 

The provisions of §§ 61-383, 61-386, 61-389, 61-390 to 61-394, 61-406 and 
61-407 shall apply to pension funds formed under this article. 

1949 (46) 293. 



174 



Retirement Systems 



CHAPTER 5. 
Teacher's Retirement Funds. 



Article 1. 

School District No. 20 of Charleston 
County. 
Sec. 

61-451. Administered by board, 
01-452. Composition of board. 
ol-453. General powers of board. 
61-454. What fund to consist of. 
61-455. Retirement at sixty-five. 
61-456. Disability retirement. 
61-457. Annuities to be paid pro rata if 

fund insufficient. 
61-458. Payments from fund for general 

school purposes. 

Article 2. 
Greenwood County. 

61-471. School districts may set up retire- 
ment programs. 

61-472. Resolutions to be filed with county 
superintendent. 

61-473. Payments to retired teachers; basis. 

61-474. Payments not gratuities or pen- 
sions. 

Article 3. 

Camden School District No. 1, 
Kershaw County. 

61-4S1. Retirement board. 
61-4S2. Compensation. 
61-483. Duties and powers of board. 
61-484. Tax levy to provide funds; effect 
of rules and regulations. 

Retirement at sixty-five. 

Retirement for disability. 

Disbursements. 

Definition of teacher. 



61-485. 
61-486. 
61-487. 
61-488. 



Article 4. 



Columbia School District No. 1, Rich- 
land County. 

61-501. Retirement board. 

61-502. Members not to receive compen- 
sation. 

61-503. Officers of board. 

61-504. Duties and powers of board. 

61-505. Rules and regulations; accounts; 
records. 

61-506. Payments to fund and use there- 
of; effect of rules and regulations. 



Sec. 

61-507. Custody of fund; disbursements. 

61-508. Retirement at sixty-five. 

61-509. Retirement for disability. 

61-510. Only teachers ineligible under State 
System to be retired hereunder. 

61-511. Definition of teacher. 

Article 5. 
Certain Other Richland County Districts. 

61-521. Establishment. 

61-522. Constitution of board. 

61-523. Members to serve without compen- 
sation. 

61-524. Officers; treasurer's bond. 

61-525. Duties and powers. 

61-626. Rules and regulations; accounts; 
records. 

61-527. Payments to fund; use thereof; 
effect of rules and regulations. 

61-528. Custody of fund; disbursements. 

61-529. Retirement at sixty-five. 

61-530. Retirement for disability. 

61-531. Acceptance of position after retire- 
ment. 

61-532. Only teachers ineligible under State 
System eligible under article. 

61-533. Definition of teacher. 

Article 6. 
York County. 

61-541. Retirement board. 

61-542. Mileage only compensation of mem- 
bers. 

61-543. Officers; pay and expenses. 

61-544. Duties and powers. 

61-545. Rules and regulations. 

61-546. Membership in fund required. 

61-547. Tax for fund and teachers' contribu- 
tions. 

61-548. Custody of funds; disbursements. 

61-549. Rules as to annuities. 

61-550. Retirement at sixty or sixty-five. 

61-551. Teachers over sixty-five may teach 
during emergencies. 

61-552. Disability benefits. 

61-553. Maximum annuity payable. 

61-554. Effect when beneficiaries free pa- 
tients in public institutions. 

61-555. Annuities payable monthly. 

61-556. Refunds of contributions. 

61-557. Definition of teacher. 



175 



§ 61-451 Code of Laws of South Carolina § 61-455 

Article 1. 

School District No. 20 of Charleston County. 

§61-451. Administered by board. 

The public school teachers' retirement fund, of school district No. 20 of 
Charleston County shall be administered by the board of trustees herein pro- 
vided for. 

1942 Code §5546-7; 1932 Code §5442; Civ. C. '22 §2707; Civ. C. '12 § 1817; Civ. C. '02 
§ 1249; 1898 (22) 875; 1926 (34) 1023; 1939 (41) 392; 1948 (45) 2070; 1950 (46) 1925. 

§ 61-452. Composition of board. 

The chairman of the board of trustees of school district No. 20 of Charleston 
County, sometimes known as chairman of the city board of public school com- 
missioners, together with the director of business management of said school 
district, two trustees of said school district, selected by the board of trustees 
of said school district, and one member of the teaching force of the schools in 
said district chosen by said board of trustees, to be elected every four years by 
said board, shall form a board of trustees who shall have charge of and ad- 
minister said fund. 

1942 Code §5546-8; 1932 Code §5443; Civ. C. '22 §2708; Civ. C. '12 § 1818; Civ. C. '02 
§1250; 1898 (22) 875; 1940 (41) 1625. 

§61-453. General powers of board. 

The board of trustees of the fund shall invest it in stock of this State or of 
the United States or in bonds of the city of Charleston and shall make payment 
from the fund of annuities granted in pursuance of §§ 61-455 to 61-457 and shall 
from time to time make and establish such rules and regulations for the ad- 
ministration of the fund as it shall deem best. 

1942 Code §5546-8; 1932 Code §5443; Civ. C. '22 §2708; Civ. C. '12 § 1818; Civ. C. '02 
§1250; 1898 (22) 875; 1940 (41) 1625. 

§61-454. What fund to consist of. 

Such fund shall consist of : 

(1) All moneys and other property received from donations, legacies, devis- 
es, gifts, bequests or otherwise for and on account of the fund ; 

(2) Eight per cent of the proceeds on one mill of the school tax paid by 
the city of Charleston as provided by law, which the board of trustees of school 
district No. 20 of Charleston County shall annually reserve and turn over to 
the board of trustees of the fund as provided for in § 61-452 ; and 

(3) All interest or income derived from the above moneys. 

1942 Code §5546-7; 1932 Code §5542; Civ. C. '22 §2707; Civ. C. '12 § 1817; Civ. C. '02 
§ 1249; 1898 (22) 875; 1926 (34) 1023; 1939 (41) 392; 1948 (45) 2070; 1950 (46) 1925. 

§61-455. Retirement at sixty-five. 

Every teacher in the public schools of the city of Charleston who is over the 
age of sixty-five and shall have taught in the public schools for a period of 
twenty-five years next preceding the time of retirement may be retired and 
shall have the right voluntarily to retire from such service and, upon the cer- 

176 



§61-456 Retirement Systems §61-458 

tificate of the board of trustees of school district No. 20 that lie stands in 
need of maintenance, become a beneficiary under this article. Every such 
teacher so retired or retiring shall be entitled to such annuity for the remainder 
of his life as shall be determined on by the board upon consultation with the 
board of trustees of the teachers' retirement fund, to be paid by said board of 
trustees out of such fund at the same times and in the same proportions as tin- 
salaries of the teachers are paid. But the annuity so paid shall in no case ex- 
ceed six hundred dollars in any one year. 

1942 Code § 5546-9; 1932 Code § 5444; Civ. C. '22 § 2709; Civ. C. '12 § 1819; Civ. C. '02 
§ 1251; 1S9S (22) 875; 1918 (30) 756; 1919 (31) 128; 1939 (41) 392. 

§61-456. Disability retirement. 

Every teacher in the public schools in the city of Charleston who shall have 

taught continuously therein not less than twenty years and has become, without 

the fault of such teacher, mentally or physically incapacitated for such service may 

retire or be retired therefrom and become a beneficiary of such fund in the same 

manner and to the same extent as provided in § 61-455. Any such annuity shall 

cease when such incapacity ceases. 

1942 Code § 5546-10; 1932 Code § 5445; Civ. C. '22 § 2710; Civ. C. '12 § 1820; Civ. C. '02 
§1252; 1898 (22) 875. 

§ 61-457. Annuities to be paid pro rata if fund insufficient. 

In case the fund shall be insufficient to pay the annuities provided for in 

this article the board of trustees shall make a ratable distribution among the 

teachers who may be entitled to the annuities under the provisions of this 

article. But in any such case the board may in its discretion make up such 

insufficiency out of any funds under its control applicable to the current 

expenses of the schools under its charge. 

1942 Code § 5546-11; 1932 Code § 5446; Civ. C. '22 §2711; Civ. C. '12 § 1821; Civ. C. '02 
§1253; 1898 (22) 875; 1916 (29) 881; 1939 (41) 392. 

§ 61-458. Payments from fund for general school purposes. 

The board of trustees of the fund ma)' pay over and transfer to the board 
of trustees of School District No. 20 of Charleston County, for the general pur- 
poses of said school district, all or any part of the fund (other than moneys 
or other property received from private donations, legacies, devises, gifts or 
bequests). In the event that after any such payment and transfer the balance 
of the trust fund remaining in the hands of the trustees thereof shall at any 
time be insufficient for the payment of the annuities provided for in §§ 61-455 
to 61-457, such deficiency shall be supplied in the annual appropriations for 
said school district No. 20 and the corporate authorities of Charleston County 
shall annually levy and collect such number of mills on all of the taxable 
property of said schol district No. 20 as shall be sufficient for that purpose. 

1942 Code § 5546-8; 1932 Code § 5443; Civ. C. '22 §2708; Civ. C. '12 § 1818; Civ. C. '02 
§ 1250; 1898 (22) 875; 1940 (41) 1625; 1950 (46) 1925. 

[6 SC Code] — 12 1/7 



§61-471 Code of Laws of South Carolina §61-481 

Article 2. 
Greenwood County. 

§ 61-471. School districts may set up retirement programs. 

For the purpose of encouraging continuous service of public school teachers 
in Greenwood County, the board of trustees of any school district in said 
county, within the limit of funds annually provided for ordinary school pur- 
poses, may in its discretion set up a program nondiscriminatory in character 
as between teachers similarly situated for the retirement on part pay of teach- 
ers who have taught in the public schools of the district for not less than twen- 
ty years and who at the time of retirement have become incapacitated for 
further efficient service or who have reached an age of not less than sixty-five 
years. 

1944 (43) 1231. 

§ 61-472. Resolutions to be filed with county superintendent. 

The board of trustees shall file with the county superintendent of education 
copies of all resolutions passed by the board setting up, changing or regulating 
from time to time any program for the retirement of teachers under this 
article. 

1944 (43) 1231. 

§ 61-473. Payments to retired teachers ; basis. 

Payments to retired teachers shall be made from the funds of the school 
district collected for ordinary school purposes and shall be at a rate fixed by 
the board of trustees based upon a percentage of the salary of the teacher for a 
period of ten years immediately preceding retirement. The rate of pay may 
be changed or payment suspended by the board of trustees at any time when 
the board may determine that a continuation at the same rate of pay may be 
detrimental to the school because of inadequacy of funds or for other reasons. 
The board of trustees shall have no authority or power to bind the school dis- 
trict to make any payments to retired teachers in excess of the funds which 
are on hand and available for that purpose. 

1944 (43) 1231. 

§ 61-474. Payments not gratuities or pensions. 

Payments made under the terms of this article shall not be deemed gratuities 
or pensions, but shall be deemed to be payments made to improve the schools 
by encouraging teachers to accept continuous employment in the schools of 
the district. 

1944 (43) 1231. 

Article 3. 

Camden School District No. 1, Kershaw County. 

§ 61-481. Retirement board. 

The teachers' retirement board of Camden School District No. 1, Kershaw 

1/8 [6SCCode] 



§61-482 Retirement Systems §61-486 

County, shall consist of the following members who shall assemble upon the 
call of the chairman of the board of trustees of said School District No. 1 : 

(1) The members of the board of trustees of School District No. 1 ; 

(2) The superintendent of education of Kershaw County ; and 

(3) The city superintendent of schools. 
1942 Code §5612-4; 1941 (42) 1316. 

§ 61-482. Compensation. 

Members of the board shall serve without compensation. 
1942 Code §5612-4; 1941 (42) 1316. 

§61-483. Duties and powers of board. 

The teachers' retirement board, subject to the limitations of this article, 
shall from time to time establish rules and regulations for the administration 
of the fund created by this article and for the transaction of its business. It 
shall make rules prescribing the manner and amount of payment of annuities 
from the retirement fund. It shall establish a system of accounts showing 
the condition of the fund, receipts and expenditures and investments. Such 
accounts shall be audited annually. The board shall also keep a record of 
all its proceedings which shall be open to public inspection and shall make 
an annual report to the county legislative delegation showing all fiscal trans- 
actions of the retirement system for the preceding year. 

1942 Code §5612-4; 1941 (42) 1316. 

§ 61-484. Tax levy to provide funds ; effect of rules and regulations. 

The treasurer and auditor of Kershaw County shall levy and collect a two 
mill levy on the property of Camden School District No. 1. Such fund shall 
be used only for the purpose of retiring teachers of Camden School District No. 
1, in accordance with such rules and regulations not inconsistent with the 
provisions of this article as may be promulgated by said board. Such rules 
and regulations shall have the force and effect of law. 

1942 Code §5612-4; 1941 (42) 1316. 

§ 61-485. Retirement at sixty-five. 

A teacher who has attained the age of sixty-five and who has taught in 
the public schools of District No. 1 in Kershaw County for a period of twenty- 
years shall he retired on his sixty-fifth birthday and shall be paid an annuity 
in an amount and method as fixed by the teachers' retirement board for the 
remainder of his life, except that any teacher whose sixty-fifth birthday falls 
during any school year shall be retired at the end of said school year. 

1942 Code §5612-4; 1941 (42) 1316. 

§61-486. Retirement for disability. 

The teachers' retirement board may act in the case of any teacher who 
becomes mentally or physically incapacitated before the age of retirement 
has been reached and may prescribe the manner and amount of payment of an- 
nuities to such persons at its discretion. But this section shall not become 

179 



§61-487 Code of Laws of South Carolina §61-503 

effective until the teachers' retirement board shall have determined to its 
satisfaction that the retirement fund is sufficient to pay any claim provided 
for by this section. 

1942 Code §5612-4; 1941 (42) 1316. 

§ 61-487. Disbursements. 

All payments of such funds shall be made by the board of trustees of Camden 
School District No. 1 on warrants issued by it and approved by the county 
superintendent of education, as is customary in all other school transactions. 

1942 Code §5612-4; 1941 (42) 1316. 

§ 61-488. Definition of teacher. 

The term "teacher" as used in this article shall include every teacher, li- 
brarian, principal, assistant principal, supervisor, assistant superintendent or 
superintendent serving full time. 

1942 Code §5612-4; 1941 (42) 1316. 

Article 4. 

Columbia School District No. 1, Richland County. 

§61-501. Retirement board. 

There is hereby created for Columbia School District No. 1 of Richland 
County a teachers' retirement board, hereinafter called the "teachers' retire- 
ment board". Said teachers' retirement board shall consist of the following 
members: 

(1) The chairman of the finance committee of the board of school com- 
missioners of Columbia School District No. 1 and one member of said board of 
school comissioners of Columbia School District No. 1 to be elected by said 
board to serve for a term of two years ; 

(2) The superintendent of Columbia School District No. 1 ; 

(3) Three classroom teachers of Columbia School District No. 1, to be elect- 
ed by the classroom teachers of said district assembled upon call of the super- 
intendent for that purpose to serve for a period of three years each, the original 
three members of this class, however, having been elected for terms of one, 
two and three years, respectively ; and 

(4) One principal to be selected by the administrative staff of School Dis- 
trict No. 1 from any of the schools of said school district and to serve for a 
term of three years. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-502. Members not to receive compensation. 

The members of the board shall serve without compensation. 
1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-503. Officers of board. 

There shall be a chairman, a secretary and a treasurer of said board to be 
elected by a majority vote of the members of the board. The term of office and 

180 



§61-504 Retirement Systems $ 61-506 

salary or compensation of the secretary and the term of office and salary or 
compensation of the treasurer shall be fixed by the board. The treasurer of the 
board shall furnish the board a surety bond in a company authorized to do 
business in this State in such amount as shall be required by the board, the 
premium to be paid by the board out of the retirement fund. 
1942 Code §5651-1; 1939 (411 404; 1940 (41) 1800. 

§61-504. Duties and powers of board. 

The teachers' retirement board, subject to the provisions of this article, 
shall have the following duties and powers : 

(1) To select such employees as may be necessary to carry into effect the 
provisions of this article, fix their compensation and prescribe their duties and 
to incur such expense and make such purchases as are deemed necessary to 
administer the fund ; 

(2) To determine from time to time the investment of funds in the retire- 
ment fund and such funds shall be invested only in obligations of the United 
States, this State, including obligations of the State Highway Department 
guaranteed by the State, and such county, municipal and school district ob- 
ligations as may be approved by two thirds of the members of the retirement 
board ; and 

(3) To take any and all action deemed necessary to safeguard and admin- 
ister the fund. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-505. Rules and regulations ; accounts ; records. 

The teachers' retirement board, subject to the limitations of this article, 
shall from time to time establish rules and regulations for the administration 
of the fund created by this article and for the transaction of its business. It 
shall make rules prescribing the manner and amount of payments of annuities 
from the retirement fund. It shall establish a system of accounts showing 
the condition of the fund and receipts, expenditures and investments. Such 
accounts shall be audited annually. The board shall also keep a record of all 
of its proceedings which shall be open to public inspection and shall make an 
annual report to the county legislative delegation showing fiscal transactions 
of the retirement system for the preceding year. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-506. Payments to fund and use thereof; effect of rules and regulations. 

The board of school commissioners of Columbia School District No. 1 shall 
pay annually to the teachers' retirement board the sum of twenty-five thousand 
dollars out of the funds raised by the levy for school purposes of Columbia 
School District No. 1. The fund shall be designated as the public school teach- 
ers' retirement fund of Columbia School District No. 1 of Richland County and 
is to be used only for the purpose of retiring public schoolteachers of said 
Columbia School District No. 1 in accordance with such rules and regulations, 
not inconsistent with the provisions of this article, as may be promulgated 

181 



§61-507 Code of Laws of South Carolina §61-510 

by the board. Such rules and regulations shall have the force and effect of 
law. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-507. Custody of fund; disbursements. 

The treasurer of the teachers' retirement board shall be the custodian of 
the retirement fund. All payments from the fund shall be made by him only 
upon vouchers signed by him and one other member to be designated by the 
board. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-508. Retirement at sixty-five. 

A teacher who has attained the age of sixty-five and who has taught in the 
public schools of Columbia School District No. 1 for a period of twenty years 
shall be retired on his sixty-fifth birthday and shall be paid an annuity in an 
amount and method as fixed by the teachers' retirement board for the remain- 
der of his life, except that any teacher whose sixty-fifth birthday falls during 
any school year shall be retired at the end of such school year. 

Any teacher who was in the employment of the board of school commis- 
sioners of Columbia School District No. 1 on June 9 1939 shall be entitled to 
the above retirement and compensation on reaching the age of sixty-five at 
the discretion of a majority of the members of the teachers' retirement board, 
although such teacher may not have taught in Columbia School District No. 1 
for a period of twenty years. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-509. Retirement for disability. 

A teacher who has attained the age of fifty years and who has been declared 
by two or more doctors appointed by the teachers' retirement board to be 
mentally or physically incapacitated to render further service shall upon the 
approval of two thirds of the members of the teachers' retirement board be 
entitled to such payments as are made to teachers who have reached the age 
of sixty-five years if such teacher has been employed by Columbia School Dis- 
trict No. 1 for a period of thirty years and if such teacher has been employed 
by School District No. 1 for a period of less than thirty years the payments 
shall be arrived at by multiplying the annuity paid to those who have reached 
the age of sixty-five by the number of years of service and dividing by 
thirty. 

This section shall not become effective until the teachers' retirement board 
of Columbia School District No. 1 shall have determined to its satisfaction 
that the retirement fund is sufficient to pay any claim provided for by this sec- 
tion. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800. 

§ 61-510. Only teachers ineligible under State System to be retired hereunder. 
Only such teachers as are not eligible for retirement under the terms of 

182 



§61-511 Retirement Systems §61-524 

chapter 1 of this Title shall be eligible for retirement under the provisions of 
this article. 
1945 (44) 292. 

§61-511. Definition of teacher. 

The term "teacher" as used in this article shall mean any teacher, librarian, 
principal, assistant principal, supervisor, superintendent, assistant superintend- 
ent or other employee serving full time. 

1942 Code §5651-1; 1939 (41) 404; 1940 (41) 1800; 1944 (43) 1178. 

Article 5. 
Certain Other Richland County Districts. 

§ 61-521. Establishment. 

There is hereby created for the Richland County schools in Districts 2B and 
4 through 33, inclusive, and at the Epworth Orphanage and Carolina Orphan 
Home a teachers' retirement board of the Richland County schools in Districts 
2B and 4 through 33, inclusive, and the Epworth Orphanage and Carolina Or- 
phan Home hereinafter called the teachers' retirement board. 

1942 Code §5651-2; 1941 (42) 169; 1942 (42) 1562; 1943 (43) 302. 

§ 61-522. Constitution of board. 

Said teachers' retirement board shall consist of the following members: 

(1 ) The chairman of the Richland County board of education ; 

(2) The county superintendent of education of Richland County ; and 

(3) Five teachers to be elected by the teachers of Richland County schools in 
Districts 2B and 4 through 33, inclusive, and the Epworth Orphanage and Caro- 
lina Orphan Home, assembled upon the call of the county superintendent of 
education for that purpose, such representatives to be chosen as follows : one 
high school superintendent, one elementary school principal and three class- 
room teachers. The term of office of each of these representatives shall be 
for three years, though the original superintendent representative served only 
one year, the original elementary school principal two years and the three 
original classroom teachers for one, two and three years, respectively. 

1942 Code § 5651-2; 1941 (42) 169; 1943 (43) 302. 

§ 61-523. Members to serve without compensation. 

Members of the board shall serve without compensation. 
1942 Code § 5651-2; 1941 (42) 169; 1943 (43) 302. 

§ 61-524. Officers; treasurer's bond. 

There shall be a chairman, a secretary and a treasurer of said teachers' re- 
tirement board, to be elected by a majority vote of the members of said board. 
The term of office and compensation of the treasurer and of the secretary 
shall be fixed by the board. The treasurer of the board shall furnish the board 
a surety bond in a company authorized to do business in this State in such 

183 



§ 61-525 Code of Laws of South Carolina § 61-528 

amounts as shall be required by the board, the premium to be paid by the board 
out of the retirement fund. 

1942 Code §5651-2; 1941 (42) 169; 1943 (43) 302. 

§61-525. Duties and powers. 

The teachers' retirement board, subject to the provisions of this article, shall 
have the following duties and powers : 

(1) To select such employees as may be necessary to carry into effect the 
provisions of this article, fix their compensation, prescribe their duties and 
incur such expense and make such purchases as are deemed necessary to ad- 
minister the funds ; 

(2) To determine from time to time the investment of funds of the retire- 
ment fund, such funds to be invested only in obligations of the United States, 
of this State, including obligations of the State Highway Department guar- 
anteed by the State, and in such county, municipal and school district obli- 
gations as may be approved by two thirds of the members of the board ; and 

(3) To take any and all action deemed necessary to safeguard and admin- 
ister the fund. 

1942 Code §5651-2; 1941 (42) 169; 1943 (43) 302. 

§ 61-526. Rules and regulations ; accounts ; records. 

The teachers' retirement board, subject to the limitations of this article, 
shall from time to time establish rules and regulations for the administration 
of the fund created by this article and for the transaction of its business. It 
shall make rules prescribing the manner and amount of payments of an- 
nuities from the retirement fund. It shall establish a system of accounts 
showing the condition of the fund, receipts and expenditures and investments. 
Such accounts shall be audited annually. The board shall also keep a record 
of all its proceedings which shall be open to public inspection and shall make 
an annual report to the county legislative delegation showing all fiscal trans- 
actions of the retirement system for the preceding year. 

1942 Code §5651-2; 1941 (42) 169; 1943 (43) 302. 

§ 61-527. Payments to fund; use thereof; effect of rules and regulations. 

The Richland County board of education shall pay annually to the teachers' 
retirement board the sum of nine thousand five hundred dollars out of the 
funds raised by the levy for school purposes in Richland County. Such fund 
shall be used only for the purpose of retiring teachers of the said Districts 
2B and 4 through 33, inclusive, and the Epworth Orphanage and Carolina 
Orphan Home, in accordance with this article and such rules and regulations 
as may be promulgated by the board. Such rules and regulations shall have 
the force and effect of law. 

1942 Code §5651-2; 1941 (42) 169; 1943 (43) 302; 1944 (43) 1235. 

§ 61-528. Custody of fund ; disbursements. 

The treasurer of the teachers' retirement board shall be the custodian of 

184 



§ 61-529 Retirement Systems § 61-531 

the retirement fund. All payments from the fund shall be made by him only 
upon vouchers signed by him and one other member of the board to be 
designated by the board. 

1942 Code §5651-2; 1941 (42) 169; 1943 (43) 302. 

§61-529. Retirement at sixty -five. 

A teacher who has attained the age of sixty-five and who has taught in 
any public schools of Districts 2B and 4 through 33, inclusive, the Epvvorth 
Orphanage and Carolina Orphan Home, in Richland County, for a period of 
twenty years shall be retired on his sixty-fifth birthday and shall be paid an 
annuity in an amount and method as fixed by the teachers' retirement board for 
the remainder of his life, except that any teacher whose sixty-fifth birthday 
falls during any school year shall be retired at the end of such school year. 

Any teacher who was in the employment of the Board of School Commis- 
sioners of Districts 2B and 4 through 33, inclusive, the Epworth Orphanage 
or the Carolina Orphan Home on May 3 1941 shall be entitled to the above 
retirement and compensation on reaching the age of sixty-five at the dis- 
cretion of a majority of the members of the teachers' retirement board, al- 
though such teacher may not have taught in Districts 2B and 4 through 33, 
inclusive, the Epworth Orphanage and Carolina Orphan Home for a period 
of twenty years. 

1942 Code §5651-2; 1941 (42) 169; 1942 (42) 1562; 1943 (43) 302; 1945 (44) 20. 

§ 61-530. Retirement for disability. 

A teacher who has attained the age of fifty years and who has been de- 
clared by two or more doctors appointed by the teachers' retirement board 
to be mentally or physically incapacitated to render further service shall upon 
the approval of a majority of the members of the teachers' retirement board 
be entitled to such payments as are made to teachers who have reached the 
age of sixty-five if such teacher has been employed in schools in Districts 2B 
and 4 through 33, inclusive, the Epworth Orphanage or Carolina Orphan 
Home for a period of thirty years and if such teacher has been employed in 
such schools for a period of less than thirty years the payments shall be ar- 
rived at by multiplying the annuity paid to those who have reached the age 
of sixty-five by the number of years service and dividing by thirty. But 
this section shall not become effective until the teachers' retirement board 
shall have determined to its satisfaction that the retirement fund is sufficient 
to pay any claim provided for by this section. 

1942 Code §5651-2; 1941 (42) 169; 1943 (43) 302. 

§ 61-531. Acceptance of position after retirement. 

Any teacher who shall be retired under the provisions of this article and 
shall thereafter accept a teacher's position outside of Richland County shall, 
during any such period of employment, become ineligible to receive a pen- 
sion as provided for in this article. 

1945 (44) 20. 

1S5 



§ 61-532 Code of Laws of South Carolina § 61-543 

§ 61-532. Only teachers ineligible under State System eligible under article. 

Only such teachers as are not eligible for retirement under the terms of 
chapter 1 of this Title shall be eligible for retirement under the terms of this 
article. 

1945 (44) 292. 

§ 61-533. Definition of teacher. 

The term "teacher" as used in this article shall mean any teacher, librarian, 
school bus driver, principal, assistant principal, supervisor, including the 
Richland County textbook agent and the Richland County attendance teacher, 
assistant superintendent or superintendent, including the Richland County 
superintendent of education, serving full time. 

1942 Code §5651-2; 1941 (42) 169; 1943 (43) 302. 

Article 6. 

York County. 
§61-541. Retirement board. 

There is hereby created for York County a teachers' retirement board here- 
inafter called the "teachers' retirement board". Said board shall consist of 
seven members, as follows : 

(1) The county superintendent of education for York County; 

(2) Three members to be elected by the members of the York County 
Teachers' Association from the classroom teachers of the county ; 

(3) Two members to be elected by the York County Teachers' Association 
from the administrative officers, superintendents, assistant superintendents 
or principals of the county schools ; and 

(4) One member of the York County sinking fund commission, to be elected 
by the sinking fund commission. 

All members shall serve for terms of three years, the three classroom teacher 
members first elected having served for terms of two years and the sinking 
fund member for a term of three years. In case of death, resignation or re- 
moval for any cause of any of the aforesaid members, a successor shall be 
elected for the balance of the unexpired term. 

1943 (43) 191. 

§ 61-542. Mileage only compensation of members. 

The members of the board shall serve without compensation, except mileage 
at the rate of five cents per mile each way for attending board meetings. 

1943 (43) 191. 

§ 61-543. Officers ; pay and expenses. 

There shall be a chairman, a vice chairman, a secretary, an assistant secre- 
tary and a treasurer of the board. The county superintendent of education 
shall be chairman of the board. One of the administrative teacher members 
shall be vice chairman, to be elected by the board, and the sinking fund member 
of the board shall be the secretary and treasurer. And one of the classroom 

186 



§61-544 Retirement Systems §61-548 

teacher members shall he assistant secretary. None of the officers shall re- 
ceive any salary for his services, but his actual expenses incurred in the 
discharge of his duties shall be paid. The treasurer shall furnish to the 
board a surety bond in a company authorized to do business in ibis Slate in 
such amount as shall be required by the board, the premium therefor to be paid 
by the board out of the funds coming into its hands. 
1943 (43) 191. 

§ 61-544. Duties and powers. 

The teachers' retirement board, subject to the provisions of this article, 
shall have the following powers and duties : 

(1) To select such employees as may be necessary to carry into effect 
the provisions of this article, to fix their compensation and prescribe their 
duties and to incur such expense and make such purchases as are deemed 
necessary to administer the fund ; and 

(2) To determine from time to time the investment of funds in the re- 
tirement fund and such funds shall be invested only in obligations of the 
United States, this State, including obligations of the State Highway Depart- 
ment guaranteed by the State, and such county, municipal and school district 
obligations as may be approved by a majority of the county sinking fund 
commission. 

1943 (43) 191. 

§ 61-545. Rules and regulations. 

The teachers' retirement board, subject to the limitations of this article, 
shall from time to time establish rules and regulations for the administration 
of the fund created by this article and for the transaction of its business. 

1943 (43) 191. 

§ 61-546. Membership in fund required. 

No person shall be employed or teach in the public school system of York 
County unless such teacher shall be a contributing member to the York County 
teachers' retirement fund. 

1943 (43) 191. 

§ 61-547. Tax for fund and teachers' contributions. 

The county auditor shall levy and the county treasurer shall collect upon 
all the taxable property of York County a levy of one-half mill for the purpose 
of partially financing the operation of this retirement system. Each teacher 
in the York County public school system shall pay into the retirement fund 
herein established an amount equal to two per cent of the State aid paid 
by the State upon such teacher's salary. The county superintendent of edu- 
cation shall receive, collect and pay into the retirement fund such two per cent. 

1943 (43) 191. 

§ 61-548. Custody of funds ; disbursements. 

The treasurer of the board shall be the custodian of all funds of the board. 

187 



§61-549 Code of Laws of South Carolina §61-552 

All payments from such funds shall be made by him only upon vouchers signed 
by the chairman of the board and one other member to be designated by 
the board. 
1943 (43) 191. 

§ 61-549. Rules as to annuities. 

The board shall make rules prescribing the manner and amount of pay- 
ments of annuities to be paid from the retirement fund. 

1943 (43) 191. 

§ 61-550. Retirement at sixty or sixty-five. 

A teacher who has (a) attained the age of sixty-five years, (b) taught 
in the public schools for a period of thirty years and in the public school 
system of York County for a period of fifteen years, ten years of which shall 
have been continuous immediately preceding his application for retirement, 
and (c) qualified under the provisions of this article shall be retired on his 
sixty-fifth birthday and shall be paid an annuity in an amount and method 
as fixed by the teachers' retirement board for the remainder of his life, except 
that any teacher whose sixty-fifth birthday falls during any school year 
shall be retired at the end of such school year. If the continuous ten-year 
period immediately preceding application for retirement as above required 
shall be broken for a period of not exceeding two years by illness or for any 
period by reason of service in the armed forces of the United States or work 
for the national defense during the present emergency, then such absence 
shall be eliminated and not computed in the period of such service for retire- 
ment. 

Any teacher who shall attain the age of sixty years may by voluntary ac- 
ceptance of the provisions of this article be eligible for retirement but such 
retirement shall be compulsory upon all teachers attaining the age of sixty- 
five. Any teacher who is eligible to retire at the age of sixty who shall volun- 
tarily teach until he reaches the compulsory retirement age of sixty-five years 
shall upon retirement receive an increased annuity of five per cent of such base 
annuity for each and every additional year so taught. 

1943 (43) 191. 

§ 61-551. Teachers over sixty-five may teach during emergencies. 

In case an emergency shall be declared by the retirement board a teacher 
may continue to teach beyond the age of sixty-five years if such extension is 
requested by the teacher and the school district board of trustees. But any 
such teacher shall be required to continue to pay the contributions to the re- 
tirement fund as provided by this article. 

1943 (43) 191. 

§61-552. Disability benefits. 

A teacher who has been declared by two or more doctors, appointed by the 
teachers' retirement board, to be mentally or physically incapacitated to 
render further service as a teacher shall upon approval of two thirds of the 

188 



§61-553 Retirement Systems §61-556 

members of the board be entitled to be retired for disability. But no teacher 
shall be eligible for retirement under the provisions of this section unless 
such teacher has been employed for ten years in the York County public 
school system immediately preceding the filing of such disability application, 
except that absence in the military service or national defense work during the 
present emergency shall not be computed in the period of service necessary 
for retirement, so that absence in the national military work or national 
defense shall not be counted either way in the computation of service for re- 
tirement. Any teacher retired for disability after complying with the above 
ten years of service provision shall receive an annuity to be computed as 
follows: If such retirement shall be after completing ten years service such 
teacher shall receive an annuity equal to ten thirtieths of the sum he would 
have received if retired after thirty years service; if after eleven years cervice. 
eleven thirtieths of such sum, the sum increasing one thirtieth of such amount 
for each year over ten years which such teacher has served. The year of 
service in which such teacher is retired shall fix the percentage such teacher 
shall receive. 
1943 (43) 191. 

§ 61-553. Maximum annuity payable. 

No teacher shall receive an annuity exceeding fifty-five per cent of the State 
aid paid by the State on one year's annual salary for a five years' average im- 
mediately preceding his retirement. 

1943 (43) 191. 

§ 61-554. Effect when beneficiaries free patients in public institutions. 

If any beneficiary under the provisions of this article shall be a free patient 
in any Federal, State or county owned institution, then such benefits payable 
under this article shall be reduced fifty per cent during the period such 
teacher or patient is an inmate of such free institution. 

1943 (43) 191. 

§ 61-555. Annuities payable monthly. 

The annuities shall be payable under this article in twelve monthly install- 
ments. 

1943 (43) 191. 

§61-556. Refunds of contributions. 

In no case shall any refund be made of any contributions or payment 
made by any teacher in such retirement fund until after such teacher has been 
a contributing member to such fund for a period of three years. But after 
a teacher has been a contributing member for a period of three years and 
ceases to be a public school teacher in York County, such teacher shall be 
entitled to a refund of an amount equal to fifty per cent of his contribution 
to this fund, after four years' service seventy-five per cent of such contribu- 
tion and after five or more years ninety per cent of such contribution. 

1943 (43) 191. 

189 



§ 61-557 Code of Laws of South Carolina § 61-602 

§ 61-557. Definition of teacher. 

The term "teacher" as used in this article shall mean a teacher, librarian, 
principal, assistant principal, supervisor, attendance officer, superintendent 
or assistant superintendent serving full time. 

1943 (43) 191. 



CHAPTER 6. 

Miscellaneous Local Provisions. 

Sec. Sec. 

61-601. Retirement of certain officers of 61-602. Pensions in police and fire depart- 
Jasper County. ments of Spartanburg. 

§ 61-601. Retirement of certain officers of Jasper County. 

Any officer of Jasper County may retire upon reaching his sixty-fifth birth- 
day after having served in the office held by him for a period of not less than 
twenty-four years. The treasurer of Jasper County shall pay to any such of- 
ficer who meets the above qualifications and desires to retire the balance 
of his salary for the remainder of the term of his office. But in the case of an 
officer whose salary is paid in part by the county the county treasurer shall 
pay to him only the part which the county pays. The salary and benefits 
payable under this article shall be paid to the retired officer or to his next 
of kin in monthly installments equal to the monthly salary such officer was 
receiving on the date of his retirement. The provisions of this section shall 
apply to all officers of Jasper County who meet the qualifications set out by this 
section and who had retired prior to January 30 1950 during a term of office 
which would have continued until said date if they had not retired. 

1950 (46) 1809. 

§ 61-602. Pensions in police and fire departments of Spartanburg. 

The city council of the city of Spartanburg may in its discretion pension any 
member of the police department or of the fire department or any employee in any 
of the public service departments of the city who has been continuously in the 
employ of the city for a period of twenty years, and less time in case of disabil- 
ity through accident or otherwise in discharge of duties. The amount and the 
term of payment of such pension authorized hereunder is left entirely to the 
city council who may, by ordinance, make provision for the expenditure con- 
nected herewith. 

1942 Code §7675-51; 1932 Code §7567; 1930 (36) 1144. 



190 



Title 62. 
Securities. 

Chap. 1. General Provisions, §§ 62-1 to 62-7. 

2. Exempt Securities and Exempt Transactions, §§ 62-51 to 62-54. 

3. Registration of Securities, §§ 62-101 to 62-121. 

4. Dealers and Salesmen, §§ 62-151 to 62-165. 

5. Advertising, §§ 62-201 to 62-203. 

6. Appeals from Commissioner's Orders, §§ 62-251 to 62-255. 

7. Enforcement, Remedies, etc., §§ 62-301 to 62-317. 



CHAPTER 1. 

General Provisions. 

Sec. Sec. 

62-1. Short title. 62-5. Powers and duties of Commissioner. 

62-2. Definitions. 62-6. Effect on contracts existing when law 

62-3. Deputy Insurance Commissioner to be adopted. 

Securities Commissioner. 62-7. Securities registered under former 

62-4. Oaths of Commissioners and em- law. 

ployees. 

§62-1. Short title. 

This Title may be cited as the South Carolina Securities Act. 
1942 Code § 8136; 1937 (40) 1. 

§ 62-2. Definitions. 

When used in this Title the following terms shall, unless the text otherwise 
indicates, have the following respective meanings: 

(1) "Security" shall include (a) any note, stock, treasury stock, bond, de- 
benture, evidence of indebtedness, certificate of interest or participation or the 
right to subscribe to any of the foregoing, (b) any certificate of interest in 
a profit sharing agreement, (c) any certificate of interest in oil, gas or other 
mineral rights, leaseholds, property or royalties, fee, or title, (d) any 
interests or shares in a patent right, copyright, trademark, process or formula, 
(e) any collateral trust certificate, pre-organization certificate, pre-organiza- 
tion subscription, transferable share, investment contract or beneficial interest 
in title to property, profits or earnings or (f) any other instrument commonly 
known as a security, including an interim or temporary bond, debenture, note 
or certificate and any certificate of interest or participation in or warrant or 
right to subscribe to or purchase any security ; 

(2) "Person" shall include a natural person, a corporation created under the 
laws of this or any other state, country, sovereignty or political subdivision 

191 



§ 62-2 Code of Laws of South Carolina § 62-2 

thereof, a partnership, an association, a joint stock company, a trust and any 
unincorporated organization; 

(3) "Trust" shall not include a trust created or appointed under or by 
virtue of a last will and testament or by a court of law or equity or any public 
charitable trust; 

(4) "Sale" or "sell" shall include every disposition or attempt to dispose of 
a security or interest in a security for value and also a contract to sell, an 
exchange, an attempt to sell, an option of sale, a solicitation of a sale, a sub- 
scription or an offer to sell, directly or by an agent, or a circular, letter, ad- 
vertisement or otherwise; but a right pertaining to a security giving the 
holder the privilege to convert such security into another security of the same 
issuer shall not be deemed a sale of such other security within the meaning of 
this definition and such privilege shall not be construed as affecting the status 
of the security to which such privilege pertains with respect to exemption or 
registration under the provisions of this Title, but when such privilege of con- 
version shall be exercised, such conversion shall be subject to the limitations 
hereinafter provided in item 8 of § 62-54; and the issue or transfer of a right 
pertaining to a security and entitling the holder of such right to subscribe to 
another security of the same issuer, when such right is issued or transferred 
with the security to which it pertains, shall not be deemed a sale of such other 
security within the meaning of this definition and such right shall not be 
construed as affecting the status of the security to which such right pertains 
with respect to exemption or registration under the provisions of this Title ; 
but the sale of such other security upon the exercise of such right shall be 
subject to the provisions of this Title; any security given or delivered with, or 
as a bonus on account of, any purchase of securities or any other thing shall 
be conclusively presumed to constitute a part of the subject of such purchase 
and to have been sold for value ; 

(5) "Dealer" shall include every person, other than a salesman, who (a) in 
this State engages either for all or part of his time directly or through an agent 
in the business of selling any securities issued by another person or purchas- 
ing or otherwise acquiring such securities from another for the purpose of 
reselling them or of offering them for sale to the public or offering, buying, 
selling or otherwise dealing or trading in securities as agent or principal for 
a commission or at a profit or (b) deals in futures or differences in market 
quotations of prices or values of any securities or accepts margins on pur- 
chases or sales or pretended purchases or sale of securities; but the word 
"dealer" shall not include a person having no place of business in this State 
who sells or offers to sell securities exclusively to brokers or dealers actually 
engaged in buying and selling securities as a business ; 

(6) "Registered dealer" shall mean a dealer registered under the provisions 
of chapter 4 of this Title ; 

(7) "Issuer" shall mean and include every person who proposes to issue, 
has issued or shall hereafter issue any security, including any person who 
acts as a promoter for and on behalf of a corporation, trust or unincorporated 
association or partnership of any kind to be formed ; 

192 



§ 62-3 Securities § 62-5 

(8) "Salesman" shall include every natural person, other than a dealer, em- 
ployed, appointed or authorized by a dealer or issuer to sell securities in any 
manner in this State but the partners of a partnership and the executive officers 
of a corporation or other association registered as a dealer shall not be sales- 
men within the meaning' of this definition ; 

(9) "Broker" shall mean a dealer; 

(10) "Agent" shall mean a salesman ; 

(11) "Commissioner" shall mean the Securities Commissioner of the State 
of South Carolina; 

(12) "Mortgage" shall be deemed to include any trust instrument to secure 
a debt ; and 

(13) "Fraud" or "fraudulent practice" shall mean and include (a) any mis- 
representation, in any manner, of a material fact, such misrepresentation being 
intentional or due to gross negligence, (b) any promise, representation or 
prediction as to the future not made honestly and in good faith or (c) the 
intentional failure to disclose a material fact; but nothing herein shall limit 
or diminish the full meaning of the terms "fraud," "fraudulent" or "fraudulent 
practice" as applied or accepted in courts of law or equity. 

1942 Code §8114; 1937 (40) 1. 

§ 62-3. Deputy Insurance Commissioner to be Securities Commissioner. 

The Deputy Commissioner of Insurance shall, by virtue of and during the 
term of his office as such Deputy Commissioner, be the Securities Commis- 
sioner of the State of South Carolina and shall be commissioned as such by 
the Governor. The administration of the provisions of this Title is hereby 
vested in such Securities Commissioner. But the Securities Commissioner 
shall not receive any additional compensation as Securities Commissioner. 

1942 Code §8115; 1937 (40) 1; 1947 (45) 322. 

§ 62-4. Oaths of Commissioners and employees. 

The Commissioner and each of his employees shall take, subscribe and file 
the oath of office prescribed by law. 

1942 Code §8116; 1937 (40) 1. 

§ 62-5. Powers and duties of Commissioner. 

The Commissioner shall be vested with the powers and duties provided in 
this Title including : 

(1) To administer oaths; 

(2) To make such examinations and investigations as are provided in this 
Title; 

(3) To employ, from time to time, such attorneys, clerks and employees as 
are necessary for the administration of this Title, who shall perform such 
duties as the Commissioner shall assign to them, their compensation to be 
that as fixed by the Commissioner and to be paid out of the fees herein pro- 
vided to be paid ; 

(4) To cooperate with other governmental officials. State and national, and 
to coordinate the administration of this Title with other similar State and 

[6SCCode] — 13 193 



§ 62-6 Code of Laws of South Carolina § 62-51 

national acts in so far as such may be found to be consistent with the pur- 
poses and provisions of this Title and not in conflict with his duties here- 
under; and 

(5) Administering this Title according to the purposes declared herein. 

1942 Code §8116; 1937 (40) 1. 

§ 62-6. Effect on contracts existing when law adopted. 

In the case of sales, contracts or agreements made prior to October 28 1936 
the civil rights and liabilities of the parties thereto shall remain as provided 
by the law as it existed at the time such sales, contracts or agreements were 
made and all parts of laws repealed by this Title shall remain in force for the 
enforcement of such rights and liabilities. 

1942 Code § 8136; 1937 (40) 1. 

§ 62-7. Securities registered under former law. 

All securities which had been admitted to record and recorded in the regis- 
ter of qualified securities, as provided by the law then in effect, prior to Octo- 
ber 28 1936, shall be legally salable unless otherwise ordered by the Com- 
missioner. 

1942 Code § 8136; 1937 (40) 1. 



CHAPTER 2. 

Exempt Securities and Exempt Transactions.* 

Sec. Sec. 

62-51. Securities exempt. 62-53. Withdrawal of approval. 

62-52. Approval of stock exchanges. 62-54. Transactions exempt. 

§62-51. Securities exempt. 

Except as herein otherwise expressly provided the provisions of this Title 
shall not apply to any of the following classes of securities : 

(1) Domestic government securities.— Any security issued or guaranteed by 
the United States or any territory or insular possession thereof, by the District 
of Columbia or by any state of the United States or any political subdivision 
or agency of any thereof ; 

(2) Foreign government securities. — Any security issued or guaranteed by 
any foreign government with which the United States is at the time of the 
sale thereof maintaining diplomatic relations or by any state, province or 
political subdivision thereof having the power of taxation or assessment, 
if such security has been registered with the Securities and Exchange Commis- 
sion pursuant to the provisions of the Federal Securities Act of 1933, as 
amended, and the registration statement remains in effect as to such security : 

(3) Securities of national banks, Federal land banks, etc. — Any security issued 



* As to exemption of cooperatives and foreign corporations transacting business under 
Rural Electric Cooperative Act from application of Title 62, see § 12-1006. 

194 [6SCCode] 



§62-51 Securities §62-51 

by and representing an interest in or a direct obligation of a national bank or 
issued by any Federal land bank, joint-stock land bank or national farm loan 
association under the provisions of the Federal Farm Loan Act of July 17 
1916 or by any corporation created and acting as an instrumentality of the 
government of the United States pursuant to authority granted by the Con- 
gress of the United States ; 

(4) Securities of public service corporation. — Any security issued or guaran- 
teed either as to principal, interest or dividends by a corporation owning or 
operating a railroad or any other public service utility if such corporation is 
subject to regulation or supervision either as to its rates and charges or as 
to the issue of its own securities by a public commission, board or officer of 
the government of the United States or of any state, territory or insular pos- 
session thereof or any municipality located therein, of the District of Columbia 
or of the Dominion of Canada or any province thereof ; 

(5) Equipment securities. — Any equipment security based on a chattel mort- 
gage, lease or agreement for a conditional sale of cars, motive power or other 
rolling stock mortgaged, leased or sold to or furnished for the use of or upon 
any such railroad or other public service utility corporation defined in item (4) 
of this section or when the ownership or title of such equipment is pledged or 
retained in accordance with the provisions of the laws of the United States, 
of any state thereof or of the Dominion of Canada to secure the payment of 
such equipment securities ; 

(6) Holding company securities secured by certain exempt securities. — Any 
bond, note or other evidence of indebtedness issued by a holding corporation 
and secured by collateral consisting of any securities described in item (4) or 
(5) of this section if the collateral securities equal in fair value at least one 
hundred and twenty-five per cent of the par value of the bonds, notes or other 
evidences of indebtedness so secured ; 

(7) Securities of religious, charitable, etc., corporations. — Any security issued 
by a corporation organized exclusively for religious, educational, benevolent, 
fraternal, charitable or reformatory purposes and not for pecuniar}- profit; 
and no part of the net earnings of which inures to the benefit of any private 
stockholder or individual ; 

(8) Securities listed on stock exchanges. — Securities which at the time of the 
sale have been fully listed upon the New York stock exchange, the Boston 
stock exchange, the Chicago stock exchange, the New York curb exchange 
or any other recognized and responsible stock exchange which has been pre- 
viously approved by the Commissioner as provided in § 62-52 and also all se- 
curities senior to, or if of the same issues, upon a parity with any securities 
so listed or represented by subscription rights which have been so listed or 
evidences of indebtedness guaranteed by any company any stock of which is 
so listed, such securities to be exempt only so long as such listing shall remain 
in effect and only so long as the exchange upon which such securities are 
so listed remains approved under the provisions of § 62-52; 

(9) Securities of state banks, insurance companies, etc. — Any security issued 
(a) by and representing an interest in or a direct obligation of any state bank, 

195 



§ 62-52 Code of Laws of South Carolina § 62-52 

trust company or savings institution incorporated under the laws of and 
subject to the examination, supervision and control of this State, (b) by any 
insurance company under the supervision of the Insurance Department of 
this State or (c) by any building and loan association of this State under like 
supervision ; 

(10) A 7 otes, etc., evidencing purchases, etc. — Negotiable promissory notes and 
any draft, bill of exchange or banker's acceptance given for full value and for 
the sole purpose of evidencing or extending the time of payment of the price 
of goods, wares or merchandise purchased or which arise out of current trans- 
actions or the proceeds of which have been or are to be used for current trans- 
actions if such notes, drafts, bills of exchange or banker's acceptances have a 
definite maturity at the time of issuance of not exceeding nine months; 

(11) Securities with certain payment records. — Any security, other than com- 
mon stock, providing for a fixed return which has been outstanding and in 
the hands of the public for a period of not less than five years, upon which 
no default in payment of principal or failure to pay the return fixed has oc- 
curred for a continuous immediately preceding period of five years ; and 

(12) Securities under conditional sales contracts. — Securities evidencing in- 
debtedness due under any contract made in pursuance to the provisions of 
any statute of any state or of the United States providing for the acquisition 
of personal property under conditional sales contracts. 

1942 Code §8117; 1937 (40) 1. 

§ 62-52. Approval of stock exchanges. 

Approval of any stock exchange by the Commissioner shall be by written 
order upon a finding that : 

(1) The requirements for the listing of securities upon such exchange are 
such as substantially to effect the reasonable protection of the public as exists 
in the case of the exchanges herein expressly approved ; 

(2) Such exchange provides adequate facilities for the use of its members 
for the sale and purchase of securities listed by such exchange; and 

(3) The governing constitution and by-laws of such exchange shall require : 

(a) An adequate examination into the affairs of the issuer of the securities 
which are to be listed before permitting trading therein ; 

(b) That the issuer of such securities, so long as they be listed, shall 
periodically prepare, make public and furnish promptly to the exchange ap- 
propriate financial, income and profit and loss statements; 

(c) That securities listed and traded in on such exchange be restricted to 
those of ascertained and sound asset and/or income value; and 

(d) A reasonable surveillance of its members, including a requirement for 
periodical financial statements and a determination of financial responsibility 
of its members, and the right and obligation in the governing body of such 
exchange to suspend or expel any member found to be financially embarrassed 
or irresponsible or found to have been guilty of misconduct in his business 
dealing, or conduct prejudicial to the rights or interest of his customers. 

1942 Code §8117; 1937 (40) 1. 

196 



§ 62-53 Securities § 62-54 

§ 62-53. Withdrawal of approval. 

The Commissioner, upon ten days' notice and hearing, may at any time 
withdraw an approval theretofore granted by him to any stock exchange and 
thereupon securities so listed upon such exchange shall be no longer for such 
reason entitled to the benefits of such exemption except upon further order 
of the Commissioner again approving such exchange. 

1942 Code §8117; 1937 (40) 1. 

§ 62-54. Transactions exempt. 

Except as herein otherwise expressly provided, the provisions of this Title 
shall not apply to the sale of any security in any of the following transac- 
tions : 

(1) Judicial, etc., sales.— At any judicial, executor's, administrator's, guard- 
ian's or conservator's sale or at any sale by a receiver or trustee in insolvency 
or bankruptcy ; 

(2) Sales under pledge or mortgage. — By or for the account of a pledge holder 
or mortgagee selling or offering for sale or delivery in the ordinary course 
of business, and not for the purpose of avoiding the provisions of this Title, 
to liquidate a bona fide debt, a security pledged in good faith as security for 
such debt ; 

(3) Isolated transactions. — An isolated transaction in which any security is 
sold or offered for sale, subscription or delivery by the owner thereof or by 
his representative for the owner's account, such sale or offer for sale, sub- 
scription or deliver)' not being made in the course of repeated and successive 
transactions of a like character by such owner or on his account by such 
representatives and such owner or representative not being the underwriter 
of such security ; 

(4) Stock dividends and distributions in reorganizations. — (a) The distribu- 
tion by a corporation actively engaged in the business authorized by its char- 
ter of securities to its stockholders or other security holders as a stock divi- 
dend or other distribution out of earnings or surplus or in liquidation of such 
corporation, (b) the issuance of securities to the security holders or other 
creditors of a corporation in the process of a bona fide reorganization of such 
corporation, made in good faith and not for the purpose of avoiding the 
provisions of this Title, either in exchange for the securities of such security 
holders or claims of such creditors or partly for cash and partly in exchange 
for the securities or claims of such security holders or creditors or (c) the 
issuance of additional capital stock of a corporation sold or distributed by 
it among its own stockholders exclusively when no commission or other re- 
muneration is paid or given directly or indirectly in connection with the sale 
or distribution of such increased capital stock; 

(5) Sales to corporations, brokers, etc. — The sale, transfer or delivery of any 
security to any bank, savings institution, trust company, insurance company 
or other corporation or to any broker or dealer if such broker or dealer is 
actually engaged in buying and selling securities as a business ; 

(6) Corporate reorganizations, mergers, etc. — The transfer or exchange by one 

197 



§ 62-54 Code of Laws of South Carolina § 62-54 

corporation to another corporation of its own securities in connection with 
a consolidation or merger of such corporations or in connection with the change 
of par value stock to non par value stock or of non par value stock to par value 
stock or the exchange of outstanding shares for a greater or smaller number 
of shares; the transfer or exchange by or on the account of one corporation of 
its own securities to the holders of securities of another corporation, partner- 
ship trust, person, firm or association in any plan of distribution or exchange 
providing for the assumption or acquisition by the issuing corporation of the 
securities for which its own securities are issued or are to be issued when 
the plan of distribution or exchange is contained in a registration statement 
which has been filed for more than twenty clays with the Securities and Ex- 
change Commission of the United States or like agency of the United States 
charged with the registration of securities ; 

(7) Mortgage bonds sold to single purchaser.— -Bonds or notes secured by 
mortgage upon real estate or tangible personal property when the entire mort- 
gage together with all of the bonds or notes secured thereby are sold to a 
single purchaser at a single sale ; 

(8) Conversions. — The issue and delivery of any security in exchange for any 
other security of the same issuer pursuant to a right of conversion entitling the 
holder of the security surrendered in exchange to make such conversion, if the 
security so surrendered has been registered under the law or was, when sold, 
exempt from the provisions of the law and the security issued and delivered 
in exchange if sold at a conversion price would at the time of such conversion 
fall within the class of securities entitled to registration by notification under 
the law and for such determination the par value of the security surrendered 
in such exchange shall be deemed the price at which the securities issued and 
delivered in such exchange are sold; and 

(9) Certain stock subscriptions prior to incorporations. — Subscriptions for 
shares of the capital stock of a corporation prior to the incorporation thereof 
under the laws of this State when no expense is incurred and no commission, 
compensation or remuneration is paid or given for or in connection with the 
sale or disposition of such securities. 

1942 Code §8118; 1937 (40) 1. 



CHAPTER 3. 

Registration of Securities. 

Sec. Sec. 

62-101. When registration required. 62-106. Requirement of additional informa- 
62-102. Register of securities. tion; suspension of registration. 

62-103. Securities that may be registered by 62-107. Hearing; revocation of registration 

notification. or of suspension order. 

62-104. How securities registered by noti- 62-108. How registration by qualification 

fication. made. 

62-105. Filing fee for such registration. 62-109. Applications for such registration. 

198 



§62-101 Securities §62-103 

Sec. Sec. 

62-110. Articles of incorporation to be sub- 62-117. Registration of outstanding securi- 

mitted. ties for resale or for trading pur- 

62-111. Otbcr information that may be re- poses. 

quired. 62-118. Approval of reorganization or rc- 

62-112. Statements, etc., to be verified. capitalization of corporations. 

62-113. Fee for registration. 62-119. Grounds for revocation of rcgistra- 

62-114. Orders as to minimum cash receiv- tion of securities. 

able. 62-120. Powers of Commission in making 

62-115. Securities issued for patents, etc., investigations. 

may be required to be held in 62-121. Suspension of sale pending investi- 

escrow. gation. 
62-116. When security registered. 

§ 62-101. When registration required. 

No securities, except of a class exempt under any of the provisions of 
§ 62-51 or unless sold in any transaction exempt under any of the provisions 
of § 62-54, shall be sold within this State unless such securities shall have been 
registered by notification or by qualification as herein provided. Registration 
of stock shall be deemed to include the registration of rights to subscribe to 
such stock if the notice under § 62-104 or the application under § 62-109 for 
registration of such stock includes a statement that such rights are to be 
issued. 

1942 Code §8119; 1937 (40) 1. 

§62-102. Register of securities. 

A record of the registration of securities shall be kept in a register of se- 
curities to be kept in the office of the Commissioner in which register of 
securities shall also be recorded any orders entered by the Commissioner 
with respect to such securities. Such register and all information with 
respect to the securities registered therein shall be open to public inspection. 

1942 Code §8119; 1937 (40) 1. 

§ 62-103. Securities that may be registered by notification. 

The following classes of securities shall be entitled to registration by 
notification in the manner provided in § 62-104: 

(1) Securities issued by a corporation, partnership, association, company, 
syndicate or trust owning a property, business or industry which has been in 
continuous operation not less than three years and which has shown during 
a period of not less than two years or more than ten years next prior to the 
close of its last fiscal year preceding the offering of such securities average 
annual net earnings, after deducting all prior charges not including the charges 
upon securities to be retired out of the proceeds of sale, as follows : 

(a) In the case of interest-bearing securities, not less than one and one- 
half times the annual interest charge thereon and upon all other outstanding 
interest-bearing obligations of equal rank; 

(b) In the case of preferred stock, not less than one and one-half times 
the annual dividend requirements on such preferred stock and on all other 
outstanding stock of equal rank ; and 

(c) In the case of common stock, not less than five per cent upon all out- 

199 



§62-104 Code of Laws of South Carolina §62-104 

standing common stock of equal rank, together with the amount of common 
stock then offered for sale reckoned upon the price at which such stock is 
then offered for sale or sold ; 

The ownership by a corporation, partnership, association, company, syndi- 
cate or trust of more than fifty per cent of the outstanding voting stock of a 
corporation shall be construed as the proportionate ownership of the property, 
business or industry of such corporation and shall permit the inclusion of the 
earnings of such corporation applicable to the payment of dividends upon the 
stock so owned in the earnings of the corporation, partnership, association, 
company, syndicate or trust issuing the securities sought to be registered by 
notification for the purposes of this section. 

(2) Securities issued by seasoned corporations when such securities have 
been registered with the Securities and Exchange Commission (of the United 
States) according to the provisions of law and rules or regulations of said 
commission applicable generally to such class of securities, viz. : securities of 
a corporation which (a) has made annually available to its security holders, 
for at least ten years, financial reports (which may be reports consolidating 
the reports of the corporation and its subsidiaries) including at least a balance 
sheet and a profit and loss or income statement or (b) had a net income for 
any two fiscal years of the five fiscal years preceding the date of the latest 
balance sheet filed with the registration statement or any other class of 
securities of seasoned corporations as they may hereafter be defined or desig- 
nated or classified by the Securities and Exchange Commission or by act of 
Congress ; and 

(3) Securities which the Commissioner may, in his discretion, receive for 
registration by notification which are substantially of the same quality 
and description as either of the specific classes above named, although 
not specifically heretofore described. 

1942 Code §8120; 1937 (40) 1. 

§ 62-104. How securities registered by notification. 

Securities entitled to registration by notification shall be registered in the 
following manner : 

(1) In the case of securities falling within the class defined by item (1) 
of § 62-103, such securities shall be registered by the filing by the issuer or by 
any registered dealer interested in the sale thereof in the office of the Commis- 
sioner of a statement with respect to such securities containing the following: 

(a) The name of the issuer ; 

(b) A brief description of the security, including amount of the issue ; 

(c) The amount of the securities to be offered in the State; 

(d) A brief statement of the facts which show that the security falls 
within the class therein defined ; and 

(e) The price at which the securities are to be offered for sale, and the 
filing at that time or within two days thereafter or within such further time 
as the Commissioner shall allow, of a copy of the circular to be used for the 
public offering. 

(2) In the case of securities falling within the class defined by item (2) 

200 



§62-105 Securities §62-106 

of § 62-103, such securities shall be registered by the filing by the issuer or 
by any registered dealer interested in the sale thereof in the office of the 
Commissioner of : 

(a) Notice of intention to offer such securities for sale, together with a 
statement of the amount of such securities to be offered in this State ; and 

(b) A copy of the prospectus filed with the Securities and Exchange Com- 
mission. 

The depositing of such notice of intention to sell, statement of amount to be 
sold in the State and a copy of the prospectus together with remittance for 
the proper filing fee in a United States post office, properly enclosed in an 
envelope addressed to the Commissioner at his office in Columbia, South 
Carolina, postage prepaid, shall constitute the filing thereof. 

The filing of such statement in the office of the Commissioner and the pay- 
ment of the fee herein provided shall constitute the registration of such 
security. Upon such registration such securities may be sold in this State 
by any registered dealer giving notice in the manner provided in §62-161, 
subject, however, to the further order of the Commissioner as herein provided. 

1942 Code §8120; 1937 (40) 1. 

§ 62-105. Filing fee for such registration. 

At the time of filing the statement as prescribed in § 62-104 the applicant 
shall pay to the Commissioner a fee of one-fortieth of one per cent of the 
amount of the securities to be offered for sale in this State for which the appli- 
cant is seeking registration, computed upon the price at which such securities 
are to be sold to the public. In no case shall such fee be less than one dollar 
nor more than ten dollars. 

1942 Code §8120; 1937 (40) 1. 

§62-105. Requirement of additional information; suspension of registration. 
If, at any time, the Commissioner has reasonable grounds to believe or finds 
as a fact that the information contained in the statement or circular filed is 
or has become misleading, incorrect, inadequate or incomplete or the sale 
or offering for sale of the security may work or tend to work a fraud, the 
Commissioner may require from the person filing such statement such further 
information as may in his judgment be necessary to establish the classification 
of such security as claimed in the statement or to enable the Commissioner to 
ascertain whether the registration of such security should be revoked on any 
ground specified in § 62-119 and the Commissioner may also suspend the right 
to sell such security pending further investigation by entering an order spec- 
ifying the grounds for such action, and by notifying by mail, personally, by 
telephone confirmed in writing or by telegraph the person filing such state- 
ment and every registered dealer who shall have notified the Commissioner 
of an intention to sell such security. The refusal to furnish information re- 
quired by the Commissioner within a reasonable time, to be fixed by the 
Commissioner, may be a proper ground for the entry of such order of sus- 

201 



§62-107 . Code of Laws of South Carolina §62-110 

pension. Upon the entry of any such order of suspension no further sales 
of such security shall be made until the further order of the Commissioner. 
1942 Code §8120; 1937 (40) 1. 

§ 62-107. Hearing ; revocation of registration or of suspension order. 

In the event of the entry of such order of suspension, the Commissioner 
shall upon request give a prompt hearing to the parties interested. If no hear- 
ing is requested within a period of twenty days from the entry of such order 
or if upon such hearing the Commissioner shall determine that any such 
security does not fall within a class entitled to registration under § 62-103 
or that the registration thereof should be revoked on any ground specified 
in § 62-119, he shall enter a final order prohibiting the sale of such security, 
with his findings with respect thereto. But if the finding with respect to such 
security is that it is not entitled to registration under § 62-103, the applicant 
may apply for registration by qualification by complying with the require- 
ments of §§62-109 to 62-116. Until the entry of such final order the suspen- 
sion of the right to sell, though binding upon the persons notified thereof, 
shall be deemed confidential and shall not be published, unless it shall ap- 
pear that the order of suspension has been violated after notice. Appeals 
from such final order may be taken as herein provided. If, however, upon 
such hearing, the Commissioner shall find that the security is entitled to reg- 
istration under § 62-103 and that its sale will neither be fraudulent nor result 
in fraud, he shall forthwith enter an order revoking such order of suspension 
and such security shall be restored to its status as a security registered under 
§ 62-103, as of the date of such order of suspension. 

1942 Code §8120; 1937 (40) 1. 

§ 62-108. How registration by qualification made. 

All securities required by this Title to be registered before being sold in this 
State and not entitled to registration by notification shall be registered only 
by qualification in the manner provided by §§ 62-109 to 62-116. 

1942 Code §8121; 1937 (40) 1. 

§ 62-109. Applications for such registration. 

The Commissioner shall receive and act upon applications to have securities 
registered by qualification and may prescribe forms on which he may require 
such applications to be submitted. Applications shall be in writing and shall 
be duly signed by the applicant and sworn to by any person having knowledge 
of the facts and shall be filed in the office of the Commissioner. The)' may be 
made either by the issuer of the securities for which registration is applied 
or by any registered dealer desiring to sell such securities within the State. 

1942 Code §8121; 1937 (40) 1. 

§ 62-110. Articles of incorporation to be submitted. 

If the issuer is a corporation, there shall be filed with the application a 
certified copy of its articles of incorporation with all amendments and of its 
existing bylaws, if not already on file in the office of the Commissioner or of 

202 



§62-111 Securities §62-111 

the Secretary of State of this State. If the issuer is a partnership, an unin- 
corporated association, a joint stock company or any other form of organiza- 
tion whatsoever, there shall be filed with the application a copy of its articles 
of partnership or association and all other papers pertaining to its organiza- 
tion, if not already on file in the office of the Commissioner or of the Secretary 
of State of this State. 

1942 Code §8121; 1937 (40) 1. 

§ 62-1 11. Other information that may be required. 

The Commissioner may require the applicant to submit to the Commis- 
sioner the following information respecting the issuer and such other relevant 
information as the Commissioner may in his judgment deem necessary to 
enable him to ascertain whether such securities shall be registered pursuant 
to the provisions of this article : 

(1) The names and addresses of the directors, trustees and officers, if the 
issuer be a corporation, association or trust, of all partners, if the issuer be 
a partnership, and of the issuer, if the issuer be an individual ; 

(2) The location of the issuer's principal business office and of its principal 
office in this State, if any ; 

(3) The purposes of incorporation (if incorporated) and the general char- 
acter of the business actually to be transacted by the issuer and the purposes 
of the proposed issue ; 

(4) A statement of the capitalization of the issuer; a balance sheet showing 
the amount and general character of its assets and liabilities on a day not more 
than sixty days prior to the date of filing such balance sheet; a detailed state- 
ment of the plan upon which the issuer proposes to transact business; a copy 
of the security for the registration of which application is made; and a copy of 
any circular, prospectus, advertisement or other description of such securi- 
ties then prepared by or for such issuer or by or for such applicant (if the ap- 
plicant shall not be the issuer) to be used for distribution or publication in 
this State ; 

(5) A statement of the amount of the issuer's income, expenses and fixed 
charges during the last fiscal year or, if this issuer has been in actual business 
less than one year, then for such time as the issuer has been in actual busi- 
ness; 

(6) A statement showing the price at which such security is proposed to 
be sold, together with the maximum amount of commission or other form of 
remuneration to be paid in cash or otherwise, directly or indirectly, for or 
in connection with the sale or offering for sale of such securities; 

(7) A detailed statement showing the items of cash, property, services, 
patents, good will and any other consideration for which such securities 
have been or are to be issued in payment ; and 

(8) The amount of capital stock, if any, which is to be set aside and dis- 
posed of as promotion stock and a statement of all stock theretofore issued 
from time to time as promotion stock. 

1942 Code §S121; 1937 (40) 1. 

203 



§62-112 Code of Laws of South Carolina §62-115 

§ 62-112. Statements, etc., to be verified. 

All of the statements, exhibits and documents of every kind required by 
the Commissioner under §§ 62-110 to 62-111, except properly certified public 
documents, shall be verified by the oath of the applicant or of the issuer in such 
manner and form as may be required by the Commissioner. 

1942 Code §8121; 1937 (40) 1. 

§62-113. Fee for registration. 

At the time of filing the information as prescribed in this article, the appli- 
cant shall pay to the Commissioner a fee of one tenth of one per cent of the 
aggregate par value of the securities to be sold in this State, for which the 
applicant is seeking registration, but in no case shall such fee be less than 
twenty dollars nor more than two hundred dollars. In case of stock having no 
par value the price at which such stock is to be offered to the public shall be 
deemed to be the par value of such stock. 

1942 Code §8121; 1937 (40) 1. 

§ 62-1 14. Orders as to minimum cash receivable. 

With respect to securities required to be registered by qualification under 
the provisions of this article, the Commissioner may by order duly recorded 
require that the issuer shall receive in cash not less than eighty per cent of the 
proceeds of each sale of the securities without deductions for any commissions 
or expenses, directly or indirectly, and without liability to pay any sum what- 
soever as commission or expenses or for services in and about such sale. 

1942 Code §8121; 1937 (40) 1. 

§62-115. Securities issued for patents, etc., may be required to be held in 
escrow. 
If the statement containing information as to securities to be registered, as 
provided for in § 62-111, shall disclose that any such securities or any securities 
senior thereto shall have been or shall be intended to be issued for any patent 
right, copyright, trademark, process, formula or good will, for organization 
or promotion fees or expense or for good will or going concern value or other 
intangible assets, the amount and nature thereof shall be fully set forth and 
the Commissioner may require that such securities so issued in payment of 
such patent right, copyright, trademark, process, formula or good will, for 
organization or promotion fees or expense or for good will or going concern 
value or other intangible assets shall be delivered in escrow to the Commis- 
sioner or other depository satisfactory to the Commissioner under an escrow 
agreement that the owners of such securities shall not be entitled to withdraw 
such securities from escrow until all other stockholders who have paid for 
their stock in cash shall have been paid a dividend or dividends aggregating 
not less than six per cent, shown to the satisfaction of the Commissioner to 
have been actually earned on the investment in any common stock so held and 
that in case of dissolution or insolvency during the time such securities are 
held in escrow, the owners of such securities shall not participate in the 
assets until after the owners of all other securities shall have been paid in full. 

204 



§62-116 Securities §62-117 

No such securities so held in escrow shall be deemed to be registered or other- 
wise qualified for sale in this State unless specifically provided for by order 
of the Commissioner. 

1942 Code §8130; 1937 (40) 1. 

§ 62-116. When security registered. 

If upon examination of any application the Commissioner shall find that 
the sale of the security referred to therein would not be fraudulent and would 
not work or tend to work a fraud upon the purchaser and that the enterprise 
or business of the issuer is not based upon unsound business principles he 
shall record the registration of such security in the register of securities and 
thereupon such security so registered may be sold by the issuer or by any 
registered dealer who has notified the Commissioner of his intention so to do, 
in the manner provided in §62-161, subject, however, to further order of the 
Commissioner as herein provided. 

1942 Code §8121; 1937 (40) 1. 

§62-117. Registration of outstanding securities for resale or for trading pur- 
poses. 
Any security the entire issue of which had been issued and was outstanding 
in the hands of the public prior to October 28 1936 or any stock of the same 
rank or parity lawfully issued by way of stock split-up or a stock dividend 
thereon may be registered for resale or for dealing in or trading purposes by 
the filing by a registered dealer in the office of the Commissioner of : 

(1) The name and description of the security sought so to be registered; 
and 

(2) Notice of intention to offer for resale or to deal or trade generally in any 
such security ; and 

(3) If requested by the commissioner there shall also be filed : 

(a) A statement, with such supporting data or verifications as may be 
available, evidencing the fact that such security and the entire issue of which 
such security is a part was issued and was outstanding in the hands of the 
public prior to October 28 1936 or that such security consists of stock of the 
same rank or parity lawfully issued by way of stock split-up or a stock divi- 
dend thereon; 

(b) The price at which such security is to be offered for resale, if presently 
known, and if not known then the method or formula for arriving at the offer- 
ing price from time to time and such additional information as the dealer has 
tending to establish the fairness of such price ; and 

(c) A copy of the latest available balance sheet or other available financial 
data tending to establish the condition of the issuer thereof. 

If it shall appear to the Commissioner from the information so filed with 
him or otherwise available to him that such security, the price at which it is 
to be sold or the methods of the sale are such as would work or tend to work 
a fraud on the purchasers thereof, the Commissioner shall, after notice and 
opportunity to be heard or after a hearing thereon, refuse registration thereof; 
otherwise he shall register such security for resale or for dealing and trading 

205 



§62-118 Code of Laws of South Carolina §62-120 

generally therein by registered dealers, subject to the provisions of this Title. 

This section shall not be deemed as in any way modifying or limiting any 
of the provisions as to exemptions contained in this Title. 

1942 Code §8123; 1937 (40) 1. 

§ 62-118. Approval of reorganization or recapitalization of corporations. 

The Commissioner may on application consider and conduct or hold hear- 
ings upon any plan or reorganization or recapitalization of a corporation or- 
ganized under the laws of this State or domiciled or having its principal place 
of business within this State, proposed by such corporation or by its stock- 
holders or creditors, by which proposed plan of reorganization or recapitaliza- 
tion it is proposed to issue securities in exchange for one or more bona fide 
outstanding securities, claims or property interests or partly in such exchange 
and partly for cash and may approve the terms and conditions of such issuance 
and exchange and the fairness of such terms and conditions, after a hearing 
upon the fairness of such terms and conditions at which all persons to whom 
it is proposed to issue securities in such exchange shall have the right to ap- 
pear. And the Commissioner may also approve fair and reasonable terms and 
conditions for any resale of such securities so issued in such exchange to the 
end of preventing fraud or deception in any such exchange or the resale of 
any securities so issued in such exchange. 

1942 Code § 8124; 1937 (40) 1. 

§ 62-119. Grounds for revocation of registration of securities. 

The Commissioner may revoke the registration of any security by entering 
an order to that effect, with his findings in respect thereto, if upon examination 
into the affairs of the issuer of such security it shall appear that the issuer: 

(1) Is insolvent; 

(2) Has violated any of the provisions of this Title or any order of the 
Commissioner of which such issuer has notice; 

(3) Has been or is engaged or is about to engage in fraudulent transactions ; 

(4) Is in any other way dishonest or has made any fraudulent representa- 
tion in any prospectus or in any circular or other literature that has been dis- 
tributed concerning the issuer or its securities; 

(5) Is of bad business repute; or 

(6) Does not conduct its business in accordance with law ; or 

If it shall appear that the affairs of the issuer are in an unsound condition, 
that the enterprise or business of the issuer or the security is not based upon 
sound business principles or that the issuer has refused to permit an exam- 
ination to be made by the Commissioner under the provisions of this section. 

1942 Code §8125; 1937 (40) 1. 

§ 62-120. Powers of Commission in making investigations. 

In making any examination under the provisions of §62-119 the Commis- 
sioner shall have access to and may compel the production of all the books 
and papers of the issuer, may administer oaths to and examine the officers of 
such issuer or any other person connected therewith as to its business and 

206 



§62-121 Securities §62-152 

affairs and may also require a balance sheet exhibiting the assets and liabil- 
ities of any such issuer or his income statement, or both, to be certified to 
by a public accountant either of this State or of any other state where the 
issuer's business is located, approved by the Commissioner. 

Whenever the Commissioner may deem it necessary he may also require 
such balance sheet or income statement, or both, to be made more specific 
in such particulars as the Commissioner shall point out or to be brought 
down to the latest practicable date. 

19-12 Code §8125; 1937 (40) 1. 

§ 62-121. Suspension of sale pending investigation. 

If the Commissioner shall deem it necessary he may enter an order sus- 
pending the right to sell securities pending any investigation, provided that 
the order shall state the Commissioner's grounds for taking such action. 

Notice of the entry of such order shall be given by mail, personally, by tele- 
phone confirmed in writing or by telegraph to the issuer and every registered 
dealer wdio shall have notified the Commissioner of an intention to sell such 
security. 

Before such order is made final, the issuer or dealer applying for registra- 
tion shall on application be entitled to a hearing. 

1942 Code §8125; 1937 (40) 1. 



CHAPTER 4. 
Dealers and Salesmen. 

Sec. Sec. 

62-151. Registration required. 62-161. Notice of intention to offer secur- 

62-152. Application for registration. ity for sale. 

62-153. Consent to service. 62-162. Grounds for refusal or revocation 

62-154. Registration of dealers. of registration. 

62-155. Registration of salesmen. 62-163. Suspension of registration pending 

62-156. Record of registration. hearing. 

62-157. Expiration of registration and re- 62-164. Notice to dealer of charges against 

newals. salesman. 

62-158. Registration fees. 62-165. Final order; effect on salesmen of 

62-159. Changes in officers, etc. revocation of dealer's license. 
62-160. When issuer deemed dealer. 

§ 62-151. Registration required. 

No dealer or salesman shall engage in business in this State as a dealer or 
salesman or sell any securities (including securities exempted under § 62-51 ) 
except in transactions exempt under § 62-54 unless he has been registered as a 
dealer or salesman in the office of the Commissioner pursuant to the provisions 
of this chapter. 

1942 Code § 8126; 1937 (40) 1. 

§ 62-152. Application for registration. 

An application for registration in writing shall be filed in the office of the 

207 



§ 62-153 Code of Laws of South Carolina § 62-157 

Commissioner in such form as the Commissioner may prescribe, duly veri- 
fied by oath. The application shall state the principal office of the applicant, 
wherever situated, and the location of the principal office and all branch offices 
in this State, if any, the name or style of doing business, the names, residences 
and business addresses of all persons interested in the business as principals, 
co-partners, officers or directors, specifying as to each his capacity and title, 
the general plan and character of business and the length of time the dealer 
has been engaged in business. The Commissioner may also require such 
additional information as to applicant's previous history, record and associa- 
tion as he may deem necessary to establish the good repute in business of the 
applicant. 

1942 Code § 8126; 1937 (40) 1. 

§62-153. Consent to service. 

There shall be filed with such application an irrevocable written consent 
to the service of process upon the Commissioner in actions against such dealer 
in manner and form as provided in § 62-302. 

1942 Code § 8126; 1937 (40) 1. 

§62-154. Registration of dealers. 

If the Commissioner shall find that the applicant is of good repute and has 
complied with the provisions of this chapter, including the payment of the 
fee herein required, he shall register such applicant as a dealer. 

1942 Code § 8126; 1937 (40) 1. 

§ 62-155. Registration of salesmen. 

Upon the written application of a registered dealer and general satisfac- 
tory showing as to good character and the payment of the proper fee, the 
Commissioner shall register as salesmen of such dealer such natural persons 
as the dealer may request. Such registration shall cease upon the termina- 
tion of the employment of any such salesmen by such dealer. 

1942 Code § 8126; 1937 (40) 1. 

§ 62-156. Record of registration. 

The names and addresses of all persons approved for registration as dealers 
or salesmen and all orders with respect thereto shall be recorded in a register 
of dealers and salesmen kept in the office of the Commissioner, which shall be 
open to public inspection. 

1942 Code §8126; 1937 (40) 1. 

§ 62-157. Expiration of registration and renewals. 

Every registration under this chapter shall expire on the 31st day of Decem- 
ber in the year in which it is made, but new registrations for the succeeding 
year shall be issued upon written application and upon payment of the fee as 
herein required without the filing of further statements or furnishing any 
further information unless specifically required by the Commissioner. Appli- 
cations for renewals must be made not less than thirty nor more than sixty 

208 



§62-158 Securities §62-162 

days before the first day of the ensuing year; otherwise they shall be treated 
as original applications. 
1942 Code §8126; 1937 (40) 1. 

§ 62-158. Registration fees. 

The fee for original registration of a dealer shall be one hundred dollars and 
for each annual renewal thereof twenty-five dollars. The fee for registration 
of each salesman and for each annual renewal thereof shall be five dollars. 

1942 Code § 8126; 1937 (40) 1. 

§ 62-159. Changes in officers, etc. 

Changes in registration occasioned by changes in the personnel of a part- 
nership or in the principals or officers or directors of any dealer may be made 
from time to time by written application setting forth the facts with respect to 
such changes. 

1942 Code §8126; 1937 (40) 1. 

§62-160. When issuer deemed dealer. 

Any issuer of a security required to be registered under the provisions of 
this Title, selling such securities except in exempt transactions as defined in 
§ 62-54, shall be deemed a dealer within the meaning of this chapter and 
recpuired to comply with all the provisions hereof. 

1942 Code § 8126; 1937 (40) 1. 

§ 62-161. Notice of intention to offer security for sale. 

Every registered dealer who intends to offer any security of any issue, 
registered or to be registered, shall notify the Commissioner in writing of his 
intention so to do. The notice shall contain the name of the dealer and shall 
state the name of the security to be offered for sale and whenever a dealer 
shall have prepared such a notice and shall have forwarded it by registered 
mail, postage prepaid and properly addressed to the Commissioner, such deal- 
er, as to the contents of such notice and the filing thereof, shall be deemed to 
have complied with the requirements of this section. 

1942 Code §8126; 1937 (40) 1. 

§ 62-162. Grounds for refusal or revocation of registration. 

Registration under this chapter may be refused or any registration granted 
may be revoked by the Commissioner if after a reasonable notice and a hear- 
ing the Commissioner determines that such applicant or registrant so regis- 
tered: 

(1) Has violated any provision of this Title or any regulation made here- 
under; 

(2) Has made a material false statement in the application for registration; 

(3) Has been guilty of a fraudulent act in connection with any sale of 
securities or has been or is engaged or is about to engage in making fictitious 
or pretended sales or purchases of any such securities or has been or is en- 

[6 SC Code] — 14 209 



§ 62-163 Code of Laws of South Carolina § 62-165 

gaged or is about to engage in any practice or sale of securities which is 
fraudulent or in violation of the law; 

(4) Has failed to account to persons interested for all money or property 
received or has failed to deliver, after a reasonable time, to persons entitled 
thereto securities held or agreed to be delivered, as and when paid for and 
due to be delivered ; or 

(5) Has demonstrated his unworthiness to transact the business of dealer 
or salesman. 

It shall be sufficient cause for refusal or cancellation of registration in case 
of a partnership, corporation or any unincorporated association if any mem- 
ber of the partnership or any officer or director of the corporation or 
association has been guilty of any act or omission which would be cause for 
refusing or revoking the registration of an individual dealer or salesman. 

1942 Code § 8127; 1937 (40) 1. 

§ 62-163. Suspension of registration pending hearing. 

Pending the hearing the Commissioner may order the suspension of any 
such dealer's or salesman's registration if such order shall state the cause for 
such suspension. Until the entry of a final order the suspension of such 
dealer's registration, though binding upon the persons notified thereof, shall 
be deemed confidential and shall not be published, unless it shall appear that 
the order of suspension has been violated after notice. 

1942 Code §8127; 1937 (40) 1. 

§ 62-164. Notice to dealer of charges against salesman. 

In cases of charges against a salesman, notice thereof shall also be given 
the dealer employing such salesman. 

1942 Code § 8127; 1937 (40) 1. 

§ 62-165. Final order ; effect on salesmen of revocation of dealer's license. 

In the event the Commissioner determines to refuse or revoke a registra- 
tion as herein provided, he shall enter a final order with his findings on the 
register of dealers and salesmen. Suspension or revocation of the registra- 
tion of a dealer shall also suspend or revoke the registration of all his sales- 
men. 

1942 Code §8127; 1937 (40) L 



CHAPTER 5. 

Advertising. 

Sec. Sec. 

62-201. Advertising sale of unregistered se- 62-203. Filing copies or submission of mat- 
curities. ter in advance to Commissioner. 

62-202. Matter that must or may not appear 
in advertisements. 

210 [6SCCode] 



§ 62-201 Securities § 62-203 

§ 62-201. Advertising sale of unregistered securities. 

Except as otherwise specifically provided in this chapter, no person shall 
directly or indirectly, through agents or otherwise, publish, circulate, dis- 
tribute or cause to be published, circulated or distributed in any manner in 
this State any circular, prospectus, advertisement, printed matter, document, 
pamphlet, leaflet or other matter (hereinafter referred to as advertising mat- 
ter) containing or constituting an offer to sell securities, other than securities 
exempted under the provisions of § 62-51 hereof and other than offers to sell 
in transactions exempted under § 62-54, which have not been registered by 
notification under § 62-104 or by qualification under §§ 62-108 to 62-1 16. 

1942 Code §8128; 1937 (40) 1. 

§ 62-202. Matter that must or may not appear in advertisements. 

All advertising matter shall carry the name and address of the issuer or 
dealer circulating, publishing or distributing such matter and shall contain 
no reference to the fact that the security to be offered thereby has been reg- 
istered under the provisions of this Title nor any statement stating or implying 
that any such security is or has been approved by the Commissioner. 

Notwithstanding any other provision of this Title, any advertising matter 
may include the names of persons and non-registered dealers who have par- 
ticipated with registered dealers in the original purchase or underwriting of 
such securities without being deemed to be in violation of this Title ; but 
permission to so subscribe to such advertising matter shall not extend to such 
persons or non-registered dealers the privilege of selling such securities in this 
State except as the sales thereof shall otherwise be exempted by this Title. 
Any advertising matter may, by an appropriate readily legible legend printed 
thereon, limit the offering thereby made to any particular character of sales 
or class of transactions, in which event such advertising matter shall not 
be deemed to be for any other or additional purpose. 

1942 Code §8128; 1937 (40) 1. 

§ 62-203. Filing copies or submission of matter in advance to Commissioner. 

As to securities registered by notification under § 62-104 a copy of any such 
advertising matter, if not filed with the notice, shall be filed within forty-eight 
hours after the initial publication, circulation or distribution thereof or within 
such further time as may be allowed by the Commissioner. 

As to securities registered by qualification under §§ 62-108 to 62-116 no such 
advertising matter shall be published, circulated, distributed or caused to be 
published, circulated or distributed in any manner unless and until such 
advertising matter shall have been submitted in duplicate to the Commissioner. 

1942 Code § 8128; 1937 (40) 1. 



211 



§62-251 Code of Laws of South Carolina §62-254 

CHAPTER 6. 

Appeals from Commissioner's Orders. 

Sec. Sec. 

62-251. Taking appeals. 62-253. Appeal not to suspend order ap- 

62-252. Perfecting appeal and hearing there- pealed from. 

of. 62-254. Order on appeal. 

62-255. Appeal to Supreme Court. 

§ 62-251. Taking appeals. 

An appeal may be taken by any person interested from any final order of 
the Commissioner to the circuit court of the county in which such person 
resides by serving upon the Commissioner, within twenty days after notice 
of the entry of such order, a written notice of such appeal stating the grounds 
upon which a reversal of such final order is sought and a demand in writing 
for a certified transcript of the record and of all papers on file in his office 
affecting or relating to such order and executing a bond in the penal sum of 
five hundred dollars to this State, with sufficient surety to be approved by the 
Commissioner or the court, conditioned upon the faithful prosecution of such 
appeal to final judgment and the payment of all such costs as shall be adjudged 
against the appellant. 

1942 Code §8135; 1937 (40) 1. 

§ 62-252. Perfecting appeal and hearing thereof. 

Thereupon the Commissioner shall within ten days make, certify and file 
with the clerk of such court such a transcript, or in lieu thereof the original 
papers if the court shall so order, and the appellant shall within five days 
thereafter file the same and a copy of the notice of appeal with the clerk of 
such court. Such notice of appeal shall stand as appellant's complaint and 
thereupon the cause shall be entered on the trial calendar of the court for 
trial de novo and shall be given precedence by the court over other matters 
pending the court. The court shall receive and consider evidence, whether 
oral or documentary, concerning the order of the Commissioner from which 
the appeal is taken. 

1942 Code §8135; 1937 (40) 1. 

§ 62-253. Appeal not to suspend order appealed from. 

Such appeal shall not in anywise suspend the operation of the order ap- 
pealed from during the pendency of such appeal unless upon proper order of 
the court. 

1942 Code §8135; 1937 (40) 1. 

§ 62-254. Order on appeal. 

If the order of the Commissioner shall be reversed, the court shall by its 
mandate specifically direct the Commissioner as to his further action in the 
matter, including the making and entering of any order in connection there- 
with and the conditions, limitations or restrictions to be therein contained. 

212 



§ 62-255 Securities § 62-302 

But the Commissioner shall not thereby be barred from thereafter proceeding 
against such person for any proper cause which may thereafter accrue 
or be discovered. If such order shall be affirmed, the appellant shall not be 
barred after thirty days from filing a new application if such application is 
not otherwise barred or limited. 
1942 Code §8135; 1937 (40) 1. 

§ 62-255. Appeal to Supreme Court. 

An appeal may be taken to the Supreme Court from the judgment or decree 
of the circuit court in the same manner as other appeals are taken to that 
court. Such appeal shall not operate as a supersedeas or stay of the decree 
or judgment from which such appeal is taken. 

1942 Code §8135; 1937 (40) 1. 



CHAPTER 7. 

Enforcement, Remedies, etc. 

Sec Sec. 

62-301. Other statutory or common law 62-309. Subpoenas and enforcement thereof. 

remedies not affected. 62-310. Application for injunction or receiv- 
62-302. Consent to service in suits grow- er. 

ing out of violations of Title. 62-311. Issuance of injunction. 

62-303. How such service made. 62-312. Appointment of receiver. 

62-304. Where such suits may be brought. 62-313. Recovery of costs by State. 

62-305. Pleading and burden of proof in 62-314. Immunity from testifying. 

certain matters. 62-315. General penalty. 

62-306. Illegal and prohibited transactions. 62-316. Penalty for making false statements, 
62-307. Recovery of purchase price of se- etc. 

curities illegally sold. 62-317. Penalty for engaging, etc., in fic- 
62-308. Examinations and investigations. titious sales. 

§ 62-301. Other statutory or common law remedies not affected. 

Nothing in this Title shall limit any statutory or common law right of any 
person to bring any action in any court for any act involved in the sale of 
securities or the right of the State to punish any person for any violation of 
any other law. 

1942 Code §8134; 1937 (40) 1. 

§ 62-302. Consent to service in suits growing out of violations of Title. 

Upon any application for registration by notification under § 62-104 made 
by an issuer and upon any application for registration by qualification under 
§§ 62-108 to 62-116 whether made by an issuer or registered dealer, when the 
issuer is not domiciled in this State there shall be filed with such application 
the irrevocable written consent of the issuer or of the dealer applying for 
such registration that in suits, proceedings and actions growing out of the 
violation of any provision of this Title service on the Commissioner of any 
notice, process or pleading authorized by the laws of this State, shall be as 
valid and binding as if due service had been made on the issuer. Such writ- 

213 



§ 62-303 Code of Laws of South Carolina § 62-306 

ten consent shall be authenticated by the seal of the issuer, if it has a seal, 
and by the acknowledged signature of a member of the co-partnership or com- 
pany or by the acknowledged signature of any officer of the incorporated or 
unincorporated association, if it be an incorporated or unincorporated asso- 
ciation, duly authorized by resolution of the board of directors, trustees or 
managers of the corporation or association and shall in such case be accom- 
panied by a duly certified copy of such resolution of the board of directors, 
trustees or managers of the corporation or association authorizing the officers 
to execute the consent. 

1942 Code §8122; 1937 (40) 1. 

§ 62-303. How such service made. 

In case any process or pleadings mentioned in this Title are served upon 
the Commissioner, such service shall be made by duplicate copies, one of 
which shall be filed in the office of the Commissioner and another immediately 
forwarded by the Commissioner by registered mail to the principal office of 
the issuer against which such process or pleadings are directed. 

1942 Code §8122; 1937 (40) 1. 

§ 62-304. Where such suits may be brought. 

Any such action may be brought in the proper court of any county in this 
State in which a cause of action may arise or in which the plaintiff resides. 

1942 Code §8122; 1937 (40) 1. 

§ 62-305. Pleading and burden of proof in certain matters. 

It shall not be necessary to negative any of the exemptions provided in this 
Title in any complaint, information, indictment or any other writ or pro- 
ceedings laid or brought under this Title and the burden of establishing the 
right to any such exemption shall be upon the party claiming the benefit 
of such exemption. Any person claiming the right to register any securities 
by notification under § 62-104 shall also have the burden of establishing the 
right so to register such securities. 

1942 Code §8129: 1937 (40) 1. 

§ 62-306. Illegal and prohibited transactions. 

The use or employment by any person of any fraud, fraudulent act, fraudu- 
lent practice or fraudulent transaction or of any device, scheme or artifice 
to defraud or to obtain money or property by means of any false pretense, 
representation or promise, in connection with the sale within or from this 
State of any security, including any security exempted under § 62-51 and 
including transactions exempted under the provisions of § 62-54 any fictitious 
or pretended purchase or sale of securities, the engaging in business as a deal- 
er or salesman as defined in § 62-2 except in exempted transactions as pro- 
vided in § 62-54, without first duly being registered as provided in chapter 4 
of this Title and the sale or offer of sale of any security in violation of this 
Title are hereby declared to be illegal and are hereby prohibited. 

1942 Code §8131; 1937 (40) 1. 

214 



§ 62-307 Securities § 62-308 

§ 62-307. Recovery of purchase price of securities illegally sold. 

Every sale made in violation of any of the provisions of this Title shall be 
voidable at the election of the purchaser and the person making such sale and 
every director, officer or agent of or for such seller, if such director, officer 
or agent shall have personally participated or aided in any way in making 
such sale, shall be jointly and severally liable to such purchaser in an action 
at law in any court of competent jurisdiction upon tender of the securities 
sold or of the contract made for the full amount paid by such purchaser, with 
interest, together with all taxable court costs and reasonable attorney's fees. 
But no action shall be brought for the recovery of the purchase price after two 
years from the date of such sale and no purchaser otherwise entitled shall 
claim or have the benefit of this section who shall have refused or failed within 
thirty days from the date thereof to accept an offer in writing of the seller 
to take back the security in question and to refund the full amount paid by 
such purchaser, together with interest on such amount for the period from 
the date of payment by such purchaser down to the date of repayment, such 
interest to be computed : 

(a) In case such securities consist of interest-bearing obligations, at the 
same rate as provided in such obligations ; and 

(b) In case such securities consist of other than interest-bearing obliga- 
tions, at the rate of six per cent per annum ; less, in every case, the amount of 
any income from such securities that may have been received by such pur- 
chaser. 

1942 Code §8131; 1937 (40) 1. 

§ 62-308. Examinations and investigations. 

Whenever it shall appear to the Commissioner, either upon complaint or 
otherwise, that in the issuance, sale, promotion, negotiation, advertisement 
or distribution of any securities within this State, including any security 
exempted under provisions of § 62-51 and including any transaction exempted 
under the provisions of § 62-54, any person : 

(1) Shall have employed or employs or is about to employ any device, 
scheme or artifice to defraud or for obtaining money or property by means of 
any false pretense, representation or promise ; 

(2) Shall have made, makes or attempts to make in this State fictitious 
or pretended purchases or sales of securities ; 

(3) Shall have engaged in or engages in or is about to engage in any prac- 
tice, transaction or course of business relating to the purchase or sale of 
securities which is in violation of law, is fraudulent or has operated or would 
operate as a fraud upon the purchaser ; or 

(4) Is acting as a dealer or salesman within this State without being duly 
registered as such dealer or salesman as provided in this Title. 

The Commissioner may investigate and whenever he shall believe from 
evidence satisfactory to him that any such person has engaged in, is engaged in 
or is about to engage in any of the practices or transactions declared to be 
illegal and prohibited by § 62-306 or is selling or offering for sale any securities 

215 



§62-309 Code of Laws of South Carolina §62-311 

in violation of this Title or is acting as a dealer or salesman without being duly 
registered as provided in this Title the Commissioner may : 

(a) Require or permit such person to file with him, on such forms as he 
may prescribe, a statement or report in writing, under oath or otherwise, as 
to all the facts and circumstances concerning the sale of securities within or 
from this State by such person and such other data and information as may 
be relevant and material thereto; or 

(b) Examine the promoter, seller, broker, negotiator, advertiser or issuer 
of any such securities and any agents, employees, partners, officers, directors, 
members or stockholders thereof under oath and examine such records, books, 
documents, accounts and papers as may be relevant or material to the inquiry. 

1942 Code §8131; 1937 (40) 1. 

§ 62-309. Subpoenas and enforcement thereof. 

For the purpose of any examination under item (4) (b) of § 62-308 the Com- 
missioner may require by subpoena, summons or otherwise the presence of 
any person therein mentioned for examination. In case any person shall fail or 
refuse to file any statement or report required under said section or shall fail or 
refuse to obey any subpoena or summons of the Commissioner, to give testimony 
or answer questions as required or to produce any books, records, documents, 
accounts or papers as required, the Commissioner may apply to a court of 
competent jurisdiction for the issuance and service of a proper subpoena or 
summons, directing the person so required to appear before the Commissioner 
for examination under oath and to produce any books, documents or other 
things necessary for such examination. Any person failing to comply with 
such court subpoena or summons may be cited and punished for contempt of 
court as in such cases provided in the courts of record. 

1942 Code § 8131; 1937 (40) 1. 

§ 62-310. Application for injunction or receiver. 

Whenever it shall appear to the Commissioner from any report or statement 
filed, from any examination made as provided for in this Title or from any 
other source that any person has engaged in, is engaging in or is about to 
engage in any practice declared to be illegal and prohibited by this Title he 
may by petition or bill of complaint setting forth the facts and circumstances 
of the case bring a suit in equity in the name and on behalf of the State against 
such person for a writ of injunction or the appointment of a receiver or both. 

1942 Code §8131; 1937 (40) 1. 

§62-311. Issuance of injunction. 

In any such case the court, being satisfied by affidavit or otherwise of the 
sufficiency of such application and the truth of the allegations contained in 
the petition or bill, upon such notice as the court may by order direct, may 
proceed in a summary way to hear the affidavits, proof and allegations which 
may be offered on behalf of the parties and if upon such inquiry it shall appear 
to the court that any such person has engaged in, is engaging in or is about 
to engage in any practice declared to be illegal and prohibited by this Title, 

216 



§62-312 Securities §62-314 

the court may issue an injunction restraining such person and any agents, 
employees, brokers, partners, officers, directors and stockholders thereof from 
continuing such practices or engaging therein or doing any acts in furtherance 
thereof. And the court may also issue an injunction restraining the issuance, 
sale, offer for sale, purchase or offer to purchase, promotion, negotiation, ad- 
vertisement or distribution within or from this State of any securities by such 
person and any agents, employees, brokers, partners, officers, directors or 
stockholders thereof until the court shall otherwise order. 

1942 Code §8131; 1937 (40) 1. 

§ 62-312. Appointment of receiver. 

Whenever the equity court shalVissue any injunction as provided in § 62-311 
against any person, it may appoint a receiver with power to sue for, collect, 
receive and take into his possession all the goods and chattels, right and cred- 
its, moneys and effects, land and tenements, books, records, documents, papers, 
choses in action, bills, notes and property of every description derived by 
means of any practice declared to be illegal and prohibited by this Title, in- 
cluding also all property with which such property has been mingled, if such 
property cannot be identified in kind because of such commingling, and sell, 
convey and assign such property and hold and dispose of the proceeds thereof 
under the direction of the court for the equal benefit of all who establish an 
interest therein by reason of the use and employment by the defendant of 
any practices herein declared to be illegal and prohibited. And the court 
shall have jurisdiction of all questions arising in such proceedings and may 
make such orders and decrees therein as justice and equity shall require. 

1942 Code §8131; 1937 (40) 1. 

§62-313. Recovery of costs by State. 

In any action or proceeding brought under the provisions of this Title 
the State shall be entitled to recover costs, including reasonable solicitor's 
fees, such costs and solicitor's fees to be paid by the defendant for the use of 
the State. 

1942 Code §8131; 1937 (40) 1. 

§ 62-314. Immunity from testifying. 

No person shall be excused from testifying or from producing any book, 
document or other thing under his control before the Commissioner upon any 
investigation or examination or upon any hearing before the equity court 
and in response to any subpoena or summons in this Title mentioned upon 
the ground that his testimony or the book, document or other thing required 
of him may tend to incriminate him or to convict him of a crime or to subject 
him to punishment or penalty of forfeiture. But no person shall be prose- 
cuted, punished or subjected to any penalty or forfeiture for or on account 
of any act, transaction, matter or thing concerning which he shall have been 
so compelled to testify under oath, except that no person so testifying shall 

217 



§ 62-315 Code of Laws of South Carolina § 62-317 

be exempt from prosecution or punishment for perjury if committed by him 
in his testimony. 

1942 Code §8131; 1937 (40) 1. 

§ 62-315. General penalty. 

Whoever violates am- provision of this Title shall, upon conviction thereof, 
be punished by a fine of not more than one thousand dollars or by imprison- 
ment for not more than three years, or by both such fine and imprisonment. 
But an affirmative showing- that an act or omission which constituted a vio- 
lation occurred in good faith and on reasonable grounds for believing it not 
to be a violation shall relieve from the penalty prescribed in this section. 

1942 Code §8133; 1937 (40) 1. 

* 

§ 62-316. Penalty for making false statements, etc. 

Whoever, for the purpose of procuring the registration of any security by 
notification or by qualification or for the purpose of procuring the registration 
of any dealer or salesman, shall knowingly make any false statement or shall 
make or cause to. be made any false representation of a material fact to the 
Commissioner shall be guilty of a felony and, upon conviction thereof, shall 
be punished by imprisonment in the state prison for not less than one year 
nor more than five years or by fine of not more than one thousand dollars 
or by both such fine and imprisonment. 

1942 Code §8133; 1937 (40) 1. 

§ 62-317. Penalty for engaging, etc., in fictitious sales. 

Whoever engages in this State in the making of fictitious or pretended sales 
or purchases, causes the making of such fictitious or pretended sales or pur- 
chases or engages in the offer of fictitious or pretended sales or purchases of 
any securities within the meaning of this Title, the actual deliver)' of which is 
not to follow such sale, shall be guilty of a felony and upon conviction thereof 
shall be punished by imprisonment in the State prison for not less than one 
year, nor more than five years, or by fine of not more than five thousand dol- 
lars, or by both such fine and imprisonment. 

1942 Code § 8133; 1937 (40) 1. 



218 



Title 63. 
Soil Conservation and Improvement. 

Chap. 1. Federal Conservation Act, §§ 63-1 to 63-2. 

2. Soil Conservation Districts Law, §§ 63-51 to 63-167. 

3. Local Provisions, §§ 63-201 to 63-471. 



CHAPTER 1. 

Federal Conservation Act. 

Sec. 

63-1. Assent to Federal Conservation Act. 
63-2. Powers of Clemson College in con- 
nection therewith. 

§ 63-1. Assent to Federal Conservation Act. 

The assent of the General Assembly required by "An Act to Promote the 
Conservation and Profitable Use of Agricultural Land Resources by Tempo- 
rary Federal Aid to Farmers and by Providing for a Permanent Policy of 
Federal Aid to States for Such Purposes," (Public No. 461, 74th Congress), 
approved by the President, February 29 1936, is given to the provisions and 
requirements of said act. 

1942 Code § 5806-3; 1936 (39) 1531. 

§ 63-2. Powers of Clemson College in connection therewith. 

The trustees of The Clemson Agricultural College of South Carolina may: 

(1) Receive the grants and use them for the benefit of the State in accord- 
ance with the terms and conditions expressed in the act of Congress and as 
it may be hereafter amended by Congress and in accordance with such rules 
and regulations as may be prescribed by the Secretary of Agriculture under 
the authority delegated to him by Congress in said act ; 

(2) Submit to the Secretary prior to such time and in such manner and 
form as the Secretary prescribes a State plan to effectuate the purposes of the 
soil conservation and domestic allotment act for the year to which such plan 
is applicable; 

(3) Provide for such methods of administration and such participation in 
the administration of the plan by county and community committees or as- 
sociations of agricultural producers organized for such purpose as the Secre- 
tary finds necessary for the effective administration of the plan ; 

(4) Provide for the submission to the Secretary of such reports as he finds 
necessary to ascertain whether the plan is being carried out according to its 

219 



§63-2 



Code of Laws of South Carolina 



§63-2 



terms and for compliance with such requirements as the Secretary may pre- 
scribe to assure the correctness of and make possible the verification of such 
reports ; and 

(5) Submit to the General Assembly an annual report for each year cover- 
ing the administration and operation of such plan. 

1942 Code § 5806-3; 1936 (39) 1531. 



CHAPTER 2. 
Soil Conservation Districts Law. 



Article 1. 
General Provisions. 
Sec. 
63-51. Short title. 
63-52. Definitions. 
63-53. Legislative declaration. 
63-54. Agencies operating public lands to 
cooperate and observe regulations. 
63-55. Adjournment of hearings. 

Article 2. 
State Soil Conservation Committee. 

63-61. Members and terms of office. 

63-61.1. Areas for selection of members of 
committee. 

63-61.2. Advisors to committee. 

63-62. Chairman, quorum, etc. 

63-63. Compensation. 

63-64. Employees; legal services, etc. 

63-65. Seal, hearings and rules and regula- 
tions. 

63-66. Bonds; records; audit. 

63-67. General duties and powers. 

63-68. Delegation of powers; cooperation 
with other agencies. 

63-69. Estimates of financial needs. 

63-70. Allocation of State appropriations. 

Article 3. 
Creation of Soil Conservation Districts. 

63-81. Petition for creation of a district. 

63-82. What petition to set forth. 

63-83. Overlapping petitions. 

63-84. Hearing on petition. 

63-85. Determination against establish- 
ment; when subsequent petition 
may be filed. 

63-86. Determination of need for district; 
boundaries. 

63-87. Boundaries not to include portions 
of other districts. 

63-88. Referendum on establishment of dis- 
trict. 



Sec. 

63-89. Conduct of hearings and referenda; 
expenses. 

63-90. Final determination as to establish- 
ment of district. 

63-91. Appointment of two supervisors. 

63-92. Filing of application with Secretary 
of State. 

63-93. Action of Secretary of State. 

63-94. Subsequent petition if determination 
be against feasibility of district. 

63-95. Certificate conclusive as to estab- 
lishment; admission as evidence. 

Article 4. 

Extension or Subdivision of Districts. 

63-101. Extension of existing districts. 
63-102. Petition for subdivision of district. 
63-103. Hearing thereon. 
63-104. Determination as to subdivisions. 
63-105. Organization of subdivision as dis- 
trict. 

Article 5. 
Discontinuance of Districts. 

63-111. Petition for discontinuance; hear- 
ings thereon. 

63-112. Referendum thereon. 

63-113. Decision of Committee as to dis- 
continuance. 

63-114. Winding up and dissolution of dis- 
trict. 

63-115. Effect of dissolution. 

63-116. Petitions for dissolution may be 
entertained only once in five years. 

Article 6. 

Supervisors and Powers of Supervisors 
and Districts. 

63-121. Qualifications of appointed super- 
visors. 
63-122. Election of supervisors. 
63-123. Terms of office; vacancies; removal. 
63-124. Chairman; quorum; compensation. 



220 



§ 53-51 



Soil Conservation and Improvement 



§ 63-52 



Sec. 

63-125. Use of county agents; other agents 
and employees; legal advice. 

63-126. Bonds; records; audit. 

63-127. General powers of districts and 
supervisors. 

63-128. Requirement of contributions or 
agreements as to permanent use. 

63-129. Provisions as to acquisitions; prop- 
erty tax free. 

63-130. Supervisors may cooperate with one 
another. 

63-131. Consultation with governing bodies 
of nearby localities. 

63-132. Information for State Committee. 

Article 7. 
Land-use Regulations. 

63-141. Formulation of land-use regula- 
tions. 

63-142. Referendum prior to adoption of 
such regulations; proposed ordi- 
nance; notice. 

63-143. Conduct of referendum on regula- 
tions. 



Sec. 

63-144. Two-thirds vote prerequisite to 
adoption of regulations. 

63-145. Regulations to have effect of law. 

63-146. Amendment or repeal of regula- 
tions. 

63-147. What regulations may include. 

63-148. Uniformity of regulations. 

63-149. Printing of copies of regulations. 

63-150. Entry on lands to check observance. 

63-151. Petition to court for enforcement. 

63-152. Hearing and order of court thereon. 

63-153. Judgment after completion of work. 

Article 8. 

Boards of Adjustment. 

63-161. Appointment; vacancies; records. 
63-162. Eligibility and compensation of 

members; expenses. 
63-163. Chairman, rules, meetings, records, 

etc. 
63-164. Hardship petitions. 
63-165. Hearing and action on petition. 
63-166. Petition for court review. 
63-167. Hearing and order of court thereon. 



Article 1. 

General Provisions. 
§63-51. Short title. 

This chapter may be known and cited as the "Soil Conservation Districts 
Law." 

1942 Code § 5806-101 ; 1937 (40) 242. 

§ 63-52. Definitions. 

Whenever used or referred to in this chapter, unless a different meaning 
clearly appears from the context : 

(1) "District" or "soil conservation district" means a governmental subdivi- 
sion of this State, a public body corporate and politic, organized in accordance 
with the provisions of this chapter for the purposes, with the powers and 
subject to the restrictions herein set forth ; 

(2) "Supervisor" means one of the members of the governing body of a 
district elected or appointed in accordance with the provisions of this chapter; 

(3) "Committee" or "State Soil Conservation Committee" means the agency 
created in § 63-61 ; 

(4) "Petition" means a petition filed under the provisions of § 62-S1 for the 
creation of a district ; 

(5) "Nominating petition" means a petition filed under the provisions of 
§ 63-122 to nominate candidates for the office of supervisor of a soil conserva- 
tion district; 

(6) "State" means the State of South Carolina; 

(7) "Agency of this State" includes the government of this State and any 

221 



§ 63-53 Code of Laws of South Carolina § 63-53 

subdivision, agency or instrumentality, corporate or otherwise, of the gov- 
ernment of this State ; 

(8) "United States" or "agencies of the United States" includes the United 
States of America, the soil conservation service of the United States Depart- 
ment of Agriculture and any other agency or instrumentality, corporate or 
otherwise, of the United States of America; 

(9) "Government" or "Governmental" includes the government of this State, 
the government of the United States and any subdivision, agency or instru- 
mentality, corporate or otherwise, or either of them. 

(10) "Landowner" or "owner of land" includes any person who shall hold 
legal or equitable title to any lands lying within a district organized under 
the provisions of this chapter; 

(11) "Land occupier" or "occupier of land" includes any person, other than 
the owner, who shall be in possession of any lands lying within a district or- 
ganized under the provisions of this chapter, whether as lessee, renter, tenant 
or otherwise; 

(12) "Qualified elector" includes any person qualified to vote in elections by 
the people under the Constitution of this State ; and 

(13) "Due notice" means notice published at least twice, with an interval 
of at least seven days between the two publication dates, in a newspaper or 
other publication of general circulation within the appropriate area or, if no 
such publication of general circulation be available, by posting at a reasonable 
number of conspicuous places within the appropriate area, such posting to 
include, when possible, posting at public places where it may be customary 
to post notices concerning county or municipal affairs generally. 

1942 Code; SS06-103; 1937 (40) 242. 

§ 63-53. Legislative declaration. 

It is declared, as a matter of legislative determination: 

(1) The farm lands of the State are among the basic assets of the State 
and the preservation of these lands is necessary to protect and promote the 
health, safety and general welfare of its people; improper land-use practices 
have caused and have contributed to, and are now causing and contributing 
to, a progressively more serious erosion of farm lands of this State by wind 
and water; the breaking of natural-grass, plant and forest cover has interfered 
with the natural factors of soil stabilization, causing loosening of soil and 
exhaustion of humus and developing a soil condition that favors erosion ; the 
top soil is being washed and blown out of fields and pastures; there has been 
an accelerated washing of sloping fields; these processes of erosion by wind 
and water speed up with the removal of absorptive topsoil, causing exposure 
of less absorptive and less protective but more erodible subsoil ; failure of any 
land owner or occupier to conserve the soil and control erosion upon his lands 
causes a washing of soil and water from his lands onto other lands and makes 
the conservation of soil and control of erosion on such other lands difficult or 
impossible; 

(2) The consequences of such soil erosion in the form of soil-washing and 

222 



§63-54 Soil Conservation and Improvement §63-54 

soil-blowing are the silting and sedimentation of stream channels, reservoirs, 
dams, ditches and harbors; the loss of fertile soil and material in dust storms; 
the piling up of soil on the lower slopes and its deposit over alluvial plains; 
the reduction in productivity or outright ruin of rich bottom lands by over- 
wash of poor subsoil material, sand and gravel swept out of the hills ; de- 
terioration of soil and its fertility, deterioration of crops grown thereon and 
declining acre yields despite development of scientific processes for increasing 
such yields; loss of soil and water which causes destruction of food and cover 
for wildlife ; a blowing and washing of soil into streams which silts over spawn- 
ing beds and destroys water plants, diminishing the food supply of fish; a 
diminishing of the underground water reserve, which causes water shortages, 
intensifies periods of drought and causes crop failures; an increase in the 
speed and volume of rainfall run-off, causing severe and increasing floods 
which bring suffering, disease and death; impoverishment of families attempt- 
ing to farm eroding and eroded lands and damage to roads, highways, rail- 
ways, farm buildings and other property from floods and from severe dust 
storms; and losses in navigation, hydro-electric power, municipal water 
supply, drainage developments, farming and grazing; and 

(3) To conserve soil resources and control or prevent soil erosion it is 
necessary that land-use practices contributing to soil wastage and soil erosion 
be discouraged and discontinued and appropriate soil-conserving land-use 
practices be adopted and carried out; among the procedures necessary for 
widespread adoption are the carrying on of engineering operations, such as the 
construction of terraces, terrace outlets, check dams, dikes, ponds, ditches and 
the like; the utilization of strip cropping, lister furrowing, contour cultivating 
and contour furrowing; land drainage, seeding and planting of waste, slop- 
ing, abandoned or eroded lands in water conserving and erosion preventing 
plants, trees and grasses; forestation and reforestation; rotation of crops; soil 
stabilization with trees, grasses, legumes and other thick growing, soil-holding 
crops; the addition of soil amendments, manurial materials and fertilizers for 
the correction of soil deficiencies or for the promotion of increased growth 
of soil protecting crops; retardation of run-off by increasing absorption of 
rainfall ; and retirement from cultivation of steep, highly erodible areas and 
areas now badly gullied or otherwise eroded. 

And it is further declared to be the policy of the General Assembly to 
provide for the conservation of the soil and soil resources of this State and 
for the control and prevention of soil erosion and thereby to preserve natural 
resources, control floods, prevent impairment of dams and reservoirs, assist 
in maintaining the navigability of rivers and harbors, preserve wildlife, pro- 
tect the tax base, protect public lands and protect and promote the health, 
safety and general welfare of the people of this State. 

1942 Code § 5806-102; 1937 (40) 242. 

§ 63-54. Agencies operating public lands to cooperate and observe regulations. 

Agencies of this State which shall have jurisdiction over or be charged with 

the administration of any State-owned lands and agencies of any county or 

223 



§ 63-55 Code of Laws of South Carolina § 63-61.1 

other governmental subdivision of the State which shall have jurisdiction 
over or be charged with the administration of any county-owned or other 
publicly owned lands, lying within the boundaries of any district organized 
under this chapter, shall cooperate to the fullest extent with the supervisors 
of such districts in the effectuation of programs and operations undertaken by 
the supervisors under the provisions of this chapter. The supervisors of such 
districts shall be given free access to enter and perform work upon such 
publicly owned lands. The provisions of land-use regulations adopted pur- 
suant to article 7 of this chapter shall be in all respects observed by the agen- 
cies administering such publicly owned lands. 
1942 Code § 5806-113; 1937 (40) 242. 

§ 63-55. Adjournment of hearings. 

At any hearing pursuant to due notice, at the time and place designated in 
such notice, adjournment may be made from time to time without the necessity 
of renewing such notice for such adjourned dates. 

1942 Code § 5806-103; 1937 (40) 242. 

Article 2. 

State Soil Conservation Committee. 

§ 63-61. Establishment ; appointment and term of members. 

There is established, to serve as an agency of the State and to perform the 
functions conferred upon it in this chapter, the State Soil Conservation Com- 
mittee. The members of the Committee shall be five supervisors of soil con- 
servation districts, one from each of the five areas created by § 63-61.1. They 
shall be appointed by the Governor on the recommendation of the executive 
committee of the South Carolina Association of Soil Conservation District 
Supervisors. The members shall serve for four years, except that the first 
members from Areas 1 and 3 shall serve through December 31 1952, the 
first committee members from Areas 2 and 4 shall serve through December 
31 1953 and the first committee member from Area 5 shall serve through De- 
cember 31 1954. 

In case of the death or resignation of a committeeman, his successor shall 
be appointed in the same manner and from the same area of the State as the 
deceased or resigned member, the appointment to fill the unexpired term of the 
committee member who resigned or is deceased. 

A committee member shall not succeed himself after he has served one full 
four-year term. 

1942 Code § 5806-104; 1937 (40) 242; 1951 (47) 431. 

§ 63-61.1. Areas for selection of members of committee. 

For the purpose of selecting the five soil conservation district supervisors to 
serve as members of the State Soil Conservation Committee, the State is di- 
vided into five areas, to wit: 

(1) Area 1, the counties of Abbeville, Anderson, Cherokee, Greenville, Laurens, 
Oconee, Pickens, Spartanburg and Union; 

224 



§63-61.2 Soil Conservation and Improvement §63-64 

(2) Area 2, the counties of Aiken, Calhoun, Edgefield, Greenwood, Lexington, 
McCormick, Newberry, Richland and Saluda; 

(3) Area 3, the counties of Chester, Chesterfield, Darlington, Fairfield, Kershaw, 
Lancaster, Lee, Marlboro and York; 

(4) Area 4, the counties of Berkeley, Clarendon, Dillon, Florence, Georgetown, 
Horry, Marion, Sumter and Williamsburg; and 

(5) Area 5, the counties of Allendale, Bamberg, Barnwell, Beaufort, Charles- 
ton, Colleton, Dorchester, Hampton, Jasper and Orangeburg. 

1951 (47) 431. 

§ 63-61.2. Advisors to committee. 

The following shall serve ex officio in an advisory capacity to the State 
Soil Conservation Committee: the Director of the State Agricultural Exten- 
sion Service, the Director of the South Carolina Agricultural Experiment Sta- 
tion, the President of The Clemson Agricultural College of South Carolina, 
the State Forester, the State Supervisor of the State Department of Vocational 
Agriculture, the head of the State Game and Fish Department, the Director 
of the South Carolina Planning, Research and Development Board, the Com- 
missioner of Agriculture and, with the concurrence of the Secretary of the 
United States Department of Agriculture, the State Conservationist of the Soil 
Conservation Service, the Chairman of the Purchasing and Marketing Ad- 
ministration State Committee and the Director of the Farmers' Home Ad- 
ministration. 

1951 (47) 43L 

§ 63-62. Chairman, quorum, etc. 

The Governor shall name the chairman of the Committee. A majority of 
the Committee shall constitute a quorum and the concurrence of a majority 
in any matter within their duties shall be required for its determination. 

1942 Code § 5806-104; 1937 (40) 242; 1951 (47) 431. 

§ 63-63. Compensation. 

The members of the Committee shall receive no compensation for their serv- 
ices on the Committee but shall be entitled to expenses, including traveling 
expenses, necessarily incurred in the discharge of their duties on the Com- 
mittee. 

1942 Code § 5806-104; 1937 (40) 242. 

§ 63-64. Employees ; legal services, etc. 

The State Soil Conservation Committee may employ an administrative 
officer and such technical experts and other agents and employees, permanent 
and temporary, as it may require and shall determine their qualifications, 
duties and compensation. The Committee may call upon the Attorney General 
for such legal services as it may require or may employ its own counsel and 
legal staff. 

1942 Code § 5806-104; 1937 (40) 242. 

[6 SC Code] — 15 225 



§ 63-65 Code of Laws of South Carolina § 63-68 

§ 63-65. Seal, hearings and rules and regulations. 

The Committee shall adopt a seal which shall be judicially noticed and 
may perform such acts, hold such public hearings and promulgate such rules 
and regulations as may be necessary for the execution of its functions under 
this chapter. 

1942 Code § S806-104; 1937 (40) 242. 

§ 63-66. Bonds ; records ; audit. 

The Committee shall provide for the execution of surety bonds for all em- 
ployees and officers who shall be entrusted with funds or property, shall pro- 
vide for the keeping of a full and accurate record of all its proceedings and 
activities and of all resolutions, regulations and orders issued or adopted and 
shall provide for an annual audit of the accounts of receipts and disburse- 
ments. 

1942 Code § 5806-104; 1937 (40) 242. 

§ 63-67. General duties and powers. 

In addition to the duties and powers otherwise conferred upon the State 
Soil Conservation Committee, it shall have the following duties and powers : 

(1) To offer such assistance as may be appropriate to the supervisors of 
soil conservation districts, organized as provided in this chapter, in the carry- 
ing out of any of their powers and programs ; 

(2) To keep the supervisors of each of the several districts organized 
under the provisions of this chapter informed of the activities and experience 
of all other districts organized under this chapter and to facilitate an inter- 
change of advice and experience between such districts and cooperation be- 
tween them ; 

(3) To coordinate the programs of the several soil conservation districts 
organized under this chapter so far as this may be done by advice and consul- 
tation ; 

(4) To secure the cooperation and assistance of the United States and any 
of its agencies and of agencies and counties' of this State, in the work of such 
districts; 

(5) To disseminate information throughout the State concerning the ac- 
tivities and programs of the soil conservation districts organized hereunder 
and to encourage the information of such districts in areas where their or- 
ganization is desirable ; and 

(6) To receive gifts, appropriations, materials, equipment, lands and fa- 
cilities and to manage, operate and disburse them for the benefit of the soil 
conservation districts. 

1942 Code § 5806-104; 1937 (40) 242; 1951 (47) 431. 

§ 63-68. Delegation of powers; cooperation with other agencies. 

The Committee may delegate to one or more of its members or to one or 
more agents or employees such powers and duties as it may deem proper and 

226 [6SCCode] 



§ 63-69 Soil Conservation and Improvement § 63-70 

it may furnish information as well as call upon any nr all Slate or local agen- 
cies for cooperation in carrying out the provisions of this chapter. 
1942 Code § 5806-104; 1937 (40) 242. 

§ 63-69. Estimates of financial needs. 

On or before the first day of November, annually, the Committee shall 
transmit to the Governor, on official blanks to be furnished by him, an esti- 
mate, in itemized form, showing the amount of expenditure requirements for 
the ensuing fiscal year. The estimates submitted shall state, in addition to 
the requirements of existing law, the following information: 

(1) The number and acreage of districts in existence or in process of or- 
ganization, together with an estimate of the number and probable acreages of 
the districts which may be organized during the ensuing fiscal year; 

(2) A statement of the balance of funds, if any, available to the Committee 
and to the districts ; and 

(3) The estimates of the Committee as to the sums needed for its adminis- 
trative and other expenses and for allocation among the several districts dur- 
ing the ensuing fiscal year. 

The Commititee may require the supervisors of the respective soil conserva- 
tion districts to submit to it such statements, estimates, budgets and other 
information as it may deem necessary for the purposes of this section. 

1945 (44) 379. 

§ 63-70. Allocation of State appropriations. 

Unless otherwise provided by law all moneys which may from time to time 
be appropriated out of the State Treasury for the use of soil conservation 
districts shall be available to pay the administrative and other expenses of 
such districts and shall be allocated by the Committee among the districts 
already organized and to be organized during the fiscal year for which such 
appropriation is made. Such allocation shall be fair, reasonable and in the 
public interest, giving due consideration to the greater relative expense of 
carrying on operations within the particular districts because of such factors 
as unusual topography, unusual severity of erosion, special difficulty of carry- 
ing on operations, special volume of work to be done and the special importance 
of instituting erosion control and soil conservation operations immediately. 
In making allocations of such moneys, the Committee shall reserve an amount 
estimated by it to be adequate to enable it to make subsequent allocations 
in accordance with the provisions of this section from time to time among 
districts which may be organized within the current fiscal year after the 
initial allocations are made. All such appropriations made for the purpose 
of this chapter shall be payable to and disbursed by the treasurer of The 
Clemson Agricultural College of South Carolina upon proper warrants signed 
by the chairman of the Committee. 

1945 (44) 379. 



227 



§ 63-81 Code of Laws of South Carolina § 63-84 

Article 3. 
Creation of Soil Conservation Districts. 

§ 63-81. Petition for creation of a district. 

Any twenty-five owners of land lying within the limits of territory proposed 
to be organized into a soil conservation district may file a petition with the 
State Soil Conservation Committee asking that a soil conservation district 
be organized to function in the territory described in the petition. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-82. What petition to set forth. 
Any such petition shall set forth: 

(1) The proposed name of the district ; 

(2) That there is need, in the interest of the public health, safety and wel- 
fare, for a soil conservation district to function in the territory described in 
the petition; 

(3) A description of the territory proposed to be organized as a district, 
which shall not be required to be given by metes and bounds or by legal 
subdivisions but shall be deemed sufficient if generally accurate ; and 

(4) Requests (a) that the State Soil Conservation Committee duly define 
the boundaries for the district, (b) that a referendum be held within the 
territory so denned on the question of the creation of a soil conservation 
district in such territory and (c) that the Committee determine that such a 
district be created. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-83. Overlapping petitions. 

When more than one petition is filed covering parts of the same territory 
the State Soil Conservation Committee may consolidate all or any of such 
petitions. 

1942 Code § 5S06-105; 1937 (40) 242. 

§ 63-84. Hearing on petition. 

Within thirty days after such a petition has been filed with the State Soil 
Conservation Committee it shall cause due notice to be given of a proposed 
hearing upon the question of the desirability and necessity, in the interest 
of the public health, safety and welfare, of the creation of such district, upon 
the question of the appropriate boundaries to be assigned to such district, 
upon the propriety of the petition and other proceedings taken under this 
chapter and upon all questions relevant to such inquiries. All owners and 
occupiers of land within the limits of the territory described in the petition 
and of the lands within the limits of the territory considered for addition to 
such described territory and all other interested parties shall have the right 
to attend such hearings and to be heard. If it shall appear upon the hearing 
that it may be desirable to include within the proposed district territory out- 
side of the area within which due notice of the hearing has been given, the 
hearing shall be adjourned and due notice of a further hearing shall be given 

228 



§ 63-85 Soil Conservation and Improvement § 63-87 

throughout the entire area considered for inclusion in the district and such 
further hearing held. 

1942 Code § 5806-105; 1937 (40) 242. 

§63-85. Determination against establishment; when subsequent petition may 
be filed. 

If the Committee shall determine after such hearing, after due consideration 
of the facts presented at such hearing and such other relevant facts and in- 
formation as may be available, that there is no need for a soil conservation 
district to function in the territory considered at the hearing, it shall make 
and record such determination and shall deny the petition. After six months 
shall have expired from the date of the denial of any such petition, subsequent 
petitions covering the same or substantially the same territory may be filed 
as provided in § 63-81 and new hearings held and determinations made there- 
on. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-86. Determination of need for district ; boundaries. 

After such hearing, if the Committee shall determine, upon the facts pre- 
sented at such hearing and upon such other relevant facts and information 
as may be available, that there is need, in the interest of the public health, 
safety and welfare, for a soil conservation district to function in the terri- 
tory considered at the hearing, it shall make and record such determination 
and shall define, by metes and bounds or by legal subdivisions, the boundaries 
of such district. In making such determination and in defining such boun- 
daries the Committee shall give due weight and consideration to the topo- 
graphy of the area considered and of the State, the composition of soils there- 
in, the distribution of erosion, the prevailing land-use practices, the desira- 
bility and necessity of including within the boundaries the particular lands 
under consideration and the benefits such lands may receive from being in- 
cluded within such boundaries, the relation of the proposed area to existing 
watersheds and agricultural regions and to other soil conservation districts 
already organized or proposed for organization under the provisions of this 
chapter and such other physical, geographical and economic factors as are 
relevant, having due regard to the legislative determinations set forth in 
§ 63-53. The territory to be included within such boundaries need not be 
contiguous. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-87. Boundaries not to include portions of other districts. 

The boundaries of any such district shall include the territory as determined 
by the State Soil Conservation Committee as provided in § 63-86, but in no 
event shall they include any area included within the boundaries of another 
soil conservation district organized under the provisions of this chapter. 

1942 Code § 5806-105; 1937 (40) 242. 

229 



§ 63-88 Code of Laws of South Carolina § 63-90 

§ 63-88. Referendum on establishment of district. 

After the Committee has made and recorded a determination that there is 
need, in the interest of the public health, safety and welfare, for the or- 
ganization of a district in a particular territory and has defined the boundaries 
thereof, it shall, within a reasonable time after entry of the finding that there 
is need for the organization of the proposed district and the determination 
of the boundaries thereof, hold a referendum within the proposed district upon 
the proposition of the creation of the district and cause due notice of such 
referendum to be given. The question shall be submitted by ballots upon 
which the words "For creation of a soil conservation district of the lands 

below described and lying in the county (ies) of (and )" and 

"Against creation of a soil conservation district of the lands below described 

and lying in the county (ies) of (and )" shall appear with a 

square before each proposition and a direction to insert an X mark in the square 
before one or the other of said propositions as the voter may favor or oppose 
creation of such district. The ballot shall set forth the boundaries of such 
proposed district as determined by the Committee. All owners of lands lying 
within the boundaries of the territory, as determined by the Committee, shall 
be eligible to vote in such referendum. Only such landowners shall be eligible 
to vote. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-89. Conduct of hearings and referenda; expenses. 

The Committee shall pay all expenses for the issuance of such notices and 
the conduct of such hearings and referenda and shall supervise the conduct 
of such hearings and referenda. It shall issue appropriate regulations gov- 
erning the conduct of such hearings and referenda and providing for the regis- 
tration prior to the date of the referendum of all eligible voters or prescrib- 
ing some other appropriate procedure for the determination of those eligible 
as voters in such referendum. No informalities in the conduct of such refer- 
endum or in any matters relating thereto shall invalidate the referendum 
or the result thereof if notice thereof shall have been given substantially as 
provided in § 63-84 and such referendum shall have been fairly conducted. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-90. Final determination as to establishment of district. 

The Committee shall publish the result of such referendum and shall there- 
after consider and determine whether the operation of the district within the 
defined boundaries is administratively practicable and feasible. If the Com- 
mittee shall determine that the operation of such district is not administra- 
tively practicable and feasible it shall record such determination and deny the 
petition. If the Committee shall determine that the operation of such district 
is administratively practicable and feasible it shall record such determina- 
tion and shall proceed with the organization of the district in the manner 
provided in §§ 63-91 to 63-93. In making such determination the Committee 
shall give due regard and weight to the attitudes of the owners and occupiers 
of lands lying within the defined boundaries, the number of landowners eli- 

230 



§63-91 Soil Conservation and Improvement §63-92 

gible to vote in such referendum who shall have voted, the proportion of the 
votes cast in such referendum in favor of the creation of the district to the 
total number of votes cast, the approximate wealth and income of the land- 
owners and occupiers of the proposed district, the probable expense of carry- 
ing on erosion-control operations within such district and such cither economic 
and social factors as may be relevant to such determination, having due re- 
gard to the legislative determinations set forth in § 63-53. The Committee 
shall not have authority to determine that the operation of the proposed dis- 
trict within the denned boundaries is administratively practicable and feasible 
unless at least a majority of the votes cast in the referendum upon the pro- 
position of creation of the district shall have been cast in favor of the crea- 
tion of such district. 

1942 Code § 5806-105; 1937 (40) 242. 

§63-91. Appointment of two supervisors. • 

If the Committee shall determine that the operation of the proposed district 
within the defined boundaries is administratively practicable and feasible it 
shall appoint two supervisors to act with the three supervisors elected as pro- 
vided in article 6 of this chapter as the governing body of the district. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-92. Filing of application with Secretary of State. 

The two appointed supervisors shall present to the Secretary of State an 
application signed by them, which shall set forth (and such application need 
contain no detail other than the mere recitals) that: 

(1) A petition for the creation of the district was filed with the State Soil 
Conservation Committee pursuant to the provisions of this chapter and that 
the proceedings specified in this chapter were taken pursuant to such petition; 

(2) The application is being filed in order to complete the organization of 
the district under this chapter and the Committee has appointed the signers 
as supervisors ; 

(3) The name and official residence of each of the supervisors, together with 
a certified copy of the appointments evidencing their right to office; 

(4) The term of office of each of the supervisors ; 

(5) The name which is proposed for the district ; and 

(6) The location of the principal office of the supervisors of the district. 

The application shall be subscribed and sworn to by each of the super- 
visors before an officer authorized by the laws of this State to take and certi- 
fy oaths, who shall certify upon the application that he personally knows 
the supervisors and knows them to be the officers as affirmed in the applica- 
tion and that each has subscribed thereto in the officer's presence. The appli- 
cation shall be accompanied by a statement by the State Soil Conservation 
Committee which shall certify (and such statement need contain no detail 
other than the mere recitals) that a petition was filed, notice issued and hear- 
ing held as provided in §§ 63-81 and 63-S4; that the Committee did duly deter- 
mine that there is need, in the interest of the public health, safety and welfare, 
for a soil conservation district to function in the proposed territory and did 

231 



§ 63-93 Code of Laws of South Carolina § 63-95 

define the boundaries thereof; that notice was given and a referendum held 
on the question of the creation of such district and that the result of such 
referendum showed a majority of the votes cast in such referendum to be 
in favor of the creation of the district ; and that thereafter the Committee 
did duly determine that the operation of the proposed district is administra- 
tively practicable and feasible. Such statement shall set forth the boundaries 
of the district as defined by the committee. 
1942 Code § 5806-105; 1937 (40) 242. 

§ 63-93. Action of Secretary of State. 

The Secretary of State shall examine the application and statement and, 
if he finds that the name proposed for the district is not identical with that of 
any other soil conservation district of this State or so nearly similar as to lead 
to confusion or uncertainty, he shall receive and file them and shall record them 
in an appropriate book of record in his office. If the Secretary of State shall 
find that the name proposed for the district is identical with that of any other 
soil conservation district of this State or so nearly similar as to lead to con- 
fusion and uncertainty, he shall certify such fact to the State Soil Conserva- 
tion Committee, which shall thereupon submit to the Secretary of State a 
new name for the district, which shall not be subject to such defects. Upon 
receipt of such new name, free of such defects, the Secretary of State shall 
record the application and statement, with the name so modified, in an ap- 
propriate book of record in his office. When the application and statement 
have been made, filed and recorded, as provided in § 63-92 and this section, 
the district shall constitute a governmental subdivision of this State and a 
public body corporate and politic exercising public powers. The Secretary 
of State shall make and issue to the supervisors a certificate, under the seal 
of the State, of the due organization of the district and shall record such 
certificate with the application and statement. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-94. Subsequent petition if determination be against feasibility of district. 

After six months shall have expired from the date of entry of a determina- 
tion by the State Soil Conservation Committee that the operation of a pro- 
posed district is not administratively practicable and feasible and a denial 
of a petition pursuant to such determination, subsequent petitions may be 
filed as provided in § 63-81 and action taken thereon in accordance with the 
provisions of this chapter. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-95. Certificate conclusive as to establishment; admission as evidence. 

In any suit, action or proceeding involving the validity or enforcement of, 
or relating to, any contract, proceeding or action of the district, the district 
shall be deemed to have been established in accordance with the provisions 
of this chapter upon proof of the issuance of the certificate by the Secretary 
of State as provided in § 63-93. A copy of such certificate duly certified by 

232 



§63-101 Soil Conservation and Improvement §63-103 

the Secretary of State shall be admissible in evidence in any such suit, action 
or proceeding and shall be proof of the filing and contents thereof. 
1942 Code § 5806-105; 1937 (40) 242. 

Article 4. 

Extension or Subdivision of Districts. 

§ 63-101. Extension of existing districts. 

Petitions for including additional territory within an existing district may 
be filed with the State Soil Conservation Committee and the proceedings 
provided for in article 3 of this chapter in the case of petitions to organize 
a district shall be observed in the case of petitions for such inclusion. The 
Committee shall prescribe the form for such petition, which shall be as nearly 
as may be in the form prescribed in article 3 of this chapter for petitions to 
organize a district. When the total number of landowners in the area proposed 
for inclusion shall be less than twenty-five, the petition may be filed when 
signed by a majority of the landowners of such area and in such case no 
referendum need be held. In referenda upon petitions for such inclusion, all 
owners of land lying within the proposed additional area shall be eligible 
to vote. 

1942 Code § 5806-105; 1937 (40) 242. 

§ 63-102. Petition for subdivision of district. 

A portion of a soil conservation district, such portion being composed of 
one or more entire counties, may withdraw from such district and constitute 
itself a separate soil conservation district by the procedure set forth in this 
section and §§ 63-103 and 63-104. A petition signed by a majority of the mem- 
bers of the governing body of the soil conservation district or a petition signed 
by twenty-five landowners of the county or counties wishing to withdraw 
and constitute themselves a separate district may be filed with the State Soil 
Conservation Committee asking that the subdivision be made and constitute 
a district. Such petition shall (a) set forth the name of the district, (b) de- 
scribe the existing boundary lines of the district and boundary lines of the 
proposed district (subdivision) and (c) request that the committee hold a pub- 
lic hearing upon the question of the proposed subdivision and that the Commit- 
tee duly define the boundary lines as set out in the petition. 

1946 (44) 1537. 

§ 63-103. Hearing thereon. 

Within thirty days after such a petition has been filed with the Committee, 
it shall cause due notice to be given of a proposed hearing upon the question 
of the proposed subdivision. All occupiers of land lying within the proposed 
district and all other interested parties shall have the right to attend such 
hearing and to be heard. 

1946 (44) 1537. 

233 



§63-104 Code of Laws of South Carolina §63-112 

§ 63-104. Determination as to subdivisions. 

After such hearing the Committee shall determine, upon the facts presented 
at such hearing and upon such other relevant facts and information as may 
be available, whether there is need in the interest of the public health, safety 
and welfare for the proposed subdivision and whether the operation of the 
districts within the proposed boundaries will be administratively practicable 
and feasible. In making such determination, the Committee shall give due 
weight and consideration to the legislative determinations set forth in § 63-53 
and to the standards provided in §§ 63-86 and 63-90 for the guidance of the 
Committee in making its determinations in connection with the organization 
of districts. If the Committee determines that the proposed subdivision is 
not necessary in the interest of the public health, safety and welfare, or that 
the operation of the districts within the proposed boundaries would not be 
administratively practicable or feasible, it shall record such determination 
and deny the petition. If the Committee shall determine in favor of the pro- 
posed subdivision, it shall record such determination and define the boundary 
lines between the districts and shall notify the chairman of the governing body 
of the district to be divided of its determination. 

1946 (44) 1537. 

§ 63-105. Organization of subdivision as district. 

The Committee shall then proceed in accordance with §§ 63-91 to 63-93 
to organize the subdivision into a district and to inform the Secretary of 
State of the change in the boundaries of the remaining district and to com- 
plete the organization of the governing body of the remaining district. 

1946 (44) 1537. 

Article 5. 
Discontinuance of Districts. 

§ 63-111. Petition for discontinuance; hearings thereon. 

At any time after five years after the organization of a district under the pro- 
visions of this chapter any twenty-five owners of land lying within the boun- 
daries of such district may file a petition with the State Soil Conservation 
Committee praying that the operations of the district be terminated and the 
existence of the district discontinued. The Committee may conduct such 
public meetings and public hearings upon the petition as may be necessary 
to assist it in the consideration thereof. 

1942 Code § 5806-114; 1937 (40) 242. 

§63-112. Referendum thereon. 

Within sixty days after such a petition has been received by the Committee 
it shall give due notice of the holding of a referendum and shall supervise 
such referendum and issue appropriate regulations governing the conduct 
thereof. The question shall be submitted by ballots upon which the words 

"For terminating the existence of the (name of the soil conservation 

district to be here inserted)" and "Against terminating the existence of the 

234 



§63-113 Soil Conservation and Improvement §63-114 

(name of the soil conservation district to he here inserted)" shall 

appear with a square before each proposition and a direction to insert an 
X mark in the square before one or the other of the propositions as the voter 
may favor or oppose discontinuance of such district. All owners of land 
lying within the boundaries of the district shall be eligible to vote in such 
referendum. Only such landowners shall be eligible to vote. No informali- 
ties in the conduct of such referendum or in the matters relating thereto shall 
invalidate the referendum or the result thereof if notice thereof shall have 
been given substantially as provided in this section and the referendum shall 
have been fairly conducted. 

1942 Code § 5806-114; 1937 (40) 242. 

§ 63-113. Decision of Committee as to discontinuance. 

The Committee shall publish the result of such referendum and shall there- 
after consider and determine whether the continued operation of the district 
within the defined boundaries is administratively practicable and feasible. 
If the Committee shall determine that the continued operation of such dis- 
trict is administratively practicable and feasible it shall record such deter- 
mination and deny the petition. If the Committee shall determine that the 
continued operation of such district is not administratively practicable and 
feasible it shall record such determination and shall certify such determina- 
tion to the supervisors of the district. In making such determination the Com- 
mittee shall give due regard and weight to the attitude of the owners and 
occupiers of lands lying within the district, the number of landowners eli- 
gible to vote in such referendum who shall have voted, the proportion of 
the votes cast in such referendum in favor of the discontinuance of the dis- 
trict to the total number of votes cast, the approximate wealth and income 
of the landowners and occupiers of the district, the probable expense of carry- 
ing on erosion control operations within the district and such economic and 
social factors as may be relevant to such determination, having due regard 
to the legislative findings set forth in § 63-53. But the Committee shall not 
have authority to determine that the continued operation of the district is 
administratively practicable and feasible unless at least a majority of the 
votes cast in the referendum shall have been cast in favor of the continuance 
of such district. 

1942 Code § 5806-114; 1937 (40) 242. 

§ 63-1 14. Winding up and dissolution of district. 

Upon receipt from the State Soil Conservation Committee of a certi- 
fication that the Committee has determined that the continued operation of 
the district is not administratively practicable and feasible, pursuant to the 
provisions of this article, the supervisors shall forthwith proceed to terminate 
the affairs of the district. The supervisors shall dispose of all property 
belonging to the district at public auction and shall pay over the proceeds 
of such sale to be converted into the State Treasury. The supervisors shall 
thereupon file an application, duly verified, with the Secretary of State for 
the discontinuance of such district and shall transmit with such application 

235 



§ 63-115 Code of Laws of South Carolina § 63-122 

the certificate of the State Soil Conservation Committee setting forth the 
determination of the Committee that the continued operation of such dis- 
trict is not administratively practicable and feasible. The application shall 
recite that the property of the district has been disposed of and the proceeds 
paid over as in this section provided and shall set forth a full accounting of 
such properties and proceeds of the sale. The Secretary of State shall issue 
to the supervisors a certificate of dissolution and shall record such certifi- 
cate in an appropriate book of record in his office. 
1942 Code § 5806-114; 1937 (40) 242. 

§63-115. Effect of dissolution. 

Upon issuance of a certificate of dissolution under the provisions of this 
article all ordinances and regulations theretofore adopted and in force with- 
in such district shall be of no further force and effect. All contracts there- 
tofore entered into to which the district or supervisors are parties shall re- 
main in force and effect for the period provided in such contracts. The State 
Soil Conservation Committee shall be substituted for the district or super- 
visors as a party to such contracts. The Committee shall be entitled to all 
benefits and subject to all liabilities under such contracts and shall have the 
same right and liability to perform, to require performance, to sue and be 
sued thereon and to modify or terminate such contracts by mutual consent 
or otherwise as the supervisors of the district would have had. Such disso- 
lution shall not affect the lien of any judgment entered under the provisions 
of § 63-153 nor the pendency of any action instituted under the provisions 
of § 63-151 and the Committee shall succeed to all the rights and obligations 
of the district or supervisors as to such liens and actions. 

1942 Code § 5S06-114; 1937 (40) 242. 

§ 63-116. Petitions for dissolution may be entertained only once in five years. 

The State Soil Conservation Committee shall not be required to entertain 
petitions for the discontinuance of any district nor conduct referenda upon 
such petitions nor make determinations pursuant to such petitions in accord- 
ance with the provisions of this article more often than once in five years. 

1942 Code §5806-114; 1937 (40) 242. 

Article 6. 
Supervisors and Pozvers of Supervisors and Districts. 

§ 63-121. Qualifications of appointed supervisors. 

The two supervisors appointed by the Committee shall be persons who are 
by training and experience qualified to perform the specialized skilled services 
which will be required of them in the performance of their duties under this 
chapter. 

1942 Code § 5806-107; 1937 (40) 202. 

§ 63-122. Election of supervisors. 

On or before December 1 1954 and on or before such date in each third 

236 



§ 63-123 Soil Conservation and Improvement § 63-124 

year thereafter, the supervisors of each district shall file with the State Soil 
Conservation Committee nominating petitions, nominating at least three 
qualified electors to be elected as supervisors of the district. A nominating 
petition to be submitted to the Committee must be subscribed by twenty-five 
or more qualified electors of the district. Qualified electors may sign more 
than one such nominating petition to nominate more than one candidate for 
supervisor. 

The Committee shall thereupon give due notice of an election to be held 
on the succeeding first Tuesday of January for the election of three super- 
visors of the district. The supervisors so elected shall take office on the 
succeeding February 1st. 

The names of all nominees on behalf of whom such nominating peti- 
tions have been filed shall appear arranged in the alphabetical order of the 
surnames upon the ballots, with a square before each name and a direction 
to insert an X-mark in the square before three to indicate the voter's prefer- 
ence. All qualified electors residing within the district shall be eligible to 
vote in such election. The three candidates who shall receive the largest num- 
ber, respectively, of the votes cast in such election shall be the elected super- 
visors for such district. The Committee shall pay all expenses of such election, 
shall supervise the conduct thereof, shall prescribe regulations governing the 
conduct of such election and the determination of the eligibility of voters 
therein and shall publish the results thereof. 

1942 Code § 5806-106; 1937 (40) 242; 1951 (47) 443. 

§ 63-123. Terms of office ; vacancies ; removal. 

The term of office of each supervisor shall be three years, except that in new- 
ly created districts the elected supervisors' terms of office shall be until the next 
regular election is held under the provisions of § 63-122 and the first appointed 
supervisors shall be designated to serve for terms of one and two years, respec- 
tively, from the date of their appointment. A supervisor shall hold office 
until his successor has been elected or appointed and has qualified. Vacancies 
shall be filled for the unexpired term. The selection of successors to fill an 
unexpired term, or for a full term, shall be made in the same manner in which 
the retiring supervisors shall, respectively, have been selected, except that in 
the case of a vacancy in the unexpired term of an elected supervisor a suc- 
cessor may be appointed by the State Soil Conservation Committee upon 
the unanimous recommendation of the remaining supervisors. Any super- 
visor may be removed by the State Soil Conservation Committee upon notice 
and hearing for neglect of duty or malfeasance in office, but for no other 
reason. 

1942 Code § 5806-107; 1937 (40) 242. 

§ 63-124. Chairman; quorum; compensation. 

The supervisors shall designate a chairman and may, from time to time, 
change such designation. A majority of the supervisors shall constitute a 
quorum and the concurrence of a majority of the supervisors in any matter 
within their duties shall be required for its determination. A supervisor shall 

237 



§ 63-125 Code of Laws of South Carolina § 63-127 

receive no compensation for his services, but he shall be entitled to expenses, 
including travel expenses, necessarily incurred in the discharge of his duties. 
1942 Code § 5806-107; 1937 (40) 242. 

§ 63-125. Use of county agents ; other agents and employees ; legal advice. 

Each county agricultural agent may be the secretary to the board of super- 
visors of each district within his county. The supervisors may also utilize 
in other respects the services of the agricultural agents and the facilities of the 
county agricultural agent's offices insofar as practicable and feasible and may 
employ such additional employees and agents, permanent and temporary, 
as they may require and shall determine their qualifications, duties and com- 
pensation. The supervisors may delegate to their chairman or to one or more 
agents, or employees such powers and duties as they may deem proper. The 
supervisors may call upon the Attorney General of the State for such legal 
services as they may require or may employ their own counsel and legal staff. 

1942 Code §5806-107; 1937 (40) 242; 1951 (47) 431. 

§ 63-126. Bonds ; records ; audit. 

The supervisors shall provide for the execution of surety bonds for all em- 
ployees and officers who shall be entrusted with funds or property, shall 
provide for the keeping of a full and accurate record of all proceedings and 
of all resolutions, regulations and orders issued or adopted and shall pro- 
vide for an annual audit of the accounts of receipts and disbursements. 

1942 Code § 5806-107; 1937 (40) 242. 

§ 63-127. General powers of districts and supervisors. 

A soil conservation district organized under the provisions of this chapter 
and the supervisors thereof shall have the following powers, in addition to 
others granted in other sections of this chapter: 

(1) To conduct surveys, investigations and research relating to the char- 
acter of soil erosion and the preventive and control measures needed, to publish 
the results of such surveys, investigations or research and to disseminate in- 
formation concerning such preventive and control measures ; provided, however, 
that, in order to avoid duplication of research activities, no district shall initi- 
ate any research program except in cooperation with the government of this 
State or one of its agencies or with the United States or one of its agencies; 

(2) To conduct demonstrational projects within the district on lands owned 
or controlled by this State or one of its agencies with the cooperation of the 
agency administering and having jurisdiction thereof and on any other lands 
within the district upon obtaining the consent of the owner and occupiers 
of such lands or the necessary rights or interests in such lands, in order to 
demonstrate by example the means, methods and measures by which soil and 
soil resources may be conserved and soil erosion in the form of soil blowing 
and soil washing may be prevented and controlled ; provided, however, that in 
order to avoid duplication of demonstrational activities, no district shall ini- 
tiate any demonstrational program except in cooperation with the government 

238 



§63-127 Soil Conservation and Improvement §63-127 

of this State or one of its agencies or with the United States or one of its 
agencies ; 

(3) To carry out preventive and control measures within the district in- 
cluding, hut not limited to, engineering operations, methods of cultivation, 
the growing of vegetation, changes in use of land and the measures listed in 
item (3) of § 63-53 on lands owned or controlled hy this State or one of its 
agencies, with the cooperation of the agency administering and having juris- 
diction thereof, and on any other lands within the district upon obtaining the 
consent of the owner and the occupiers of such lands or the necessary rights 
or interests in such lands; 

(4) To cooperate, or enter into agreements with and, within the limits 
of appropriations duly made available to it by law, to furnish financial or other 
aid to any agency, governmental or otherwise, or to any owner or occupier 
of lands within the district in the carrying on of erosion control or prevention 
operations within the district, subject to such conditions as the supervisors 
may deem necessary to advance the purposes of this chapter; 

(5) To obtain options upon and to acquire, by purchase, exchange, lease, 
gift, grant, bequest, devise or otherwise, any property, real or personal, or 
rights or interests therein; to maintain, administer and improve any prop- 
erties acquired, to receive income from such properties and to expend such 
income in carrying out the purposes and provisions of this chapter; and to 
sell, lease or otherwise dispose of any of its property or interests therein in 
furtherance of the purposes and provisions of this chapter; 

(6) To make available, on such terms as it shall prescribe, to landowners 
and occupiers within the district agricultural and engineering machinery and 
equipment, fertilizer, seeds and seedlings and such other material or equip- 
ment as will assist such landowners and occupiers to carry on operations upon 
their lands for the conservation of soil resources and for the prevention or 
control of soil erosion ; 

(7) To construct, improve and maintain such structures as may be necessary 
or convenient for the performance of any of the operations authorized in this 
chapter; 

(8) To develop comprehensive plans for the conservation of soil resources 
and for the control and prevention of soil erosion within the district, which 
plans shall specify in such detail as may be possible the acts, procedures, 
performances and avoidances which are necessary or desirable for the effec- 
tuation of such plans, including the specification of engineering operations, 
methods of cultivation, the growing of vegetation, cropping programs, tillage 
practices and changes in use of land; and to publish such plans and informa- 
tion and bring them to the attention of owners and occupiers of lands within 
the district; 

(9) To take over, by purchase, lease or otherwise, and to administer any 
soil-conservation, erosion-control or erosion-prevention project located with- 
in its boundaries undertaken by the United States or one of its agencies or by 
this State or one of its agencies; to manage, as agent of the United States 
or one of its agencies or of this State or one of its agencies, any soil-conserva- 

239 



§ 63-128 Code of Laws of South Carolina § 63-131 

tion, erosion-control or erosion-prevention project within its boundaries; to 
act as agent for the United States or one of its agencies or for this State or 
one of its agencies in connection with the acquisition, construction, operation 
or administration of any soil-conservation, erosion-control or erosion-pre- 
vention project within its boundaries ; to accept donations, gifts and contri- 
butions in money, services, materials or otherwise from the United States 
or one of its agencies or from this State or one of its agencies, or from others, 
and to use or expend such moneys, services, materials or other contributions 
in carrying on its operations ; and 

(10) To sue and be sued in the name of the district; to have a seal, which 
seal shall be judicially noticed; to have perpetual succession unless terminated 
as provided in article 5 of this chapter; to make and execute contracts and 
other instruments necessary or convenient to the exercise of its powers; and to 
make, amend and repeal rules and regulations not inconsistent with this chap- 
ter to carry into effect its purposes and powers. 

1942 Code § 5806-108; 1937 (40) 242. 

§ 63-128. Requirement of contributions or agreements as to permanent use. 

As a condition to the extending of any benefits under this chapter to, or 
the performance of work upon, any lands not owned or controlled by this State 
or one of its agencies the supervisors may require contributions in money, 
services, materials or otherwise to any operations conferring such benefits 
and may require landowners and occupiers to enter into and perform such 
agreements or covenants as to the permanent use of such lands as will tend 
to prevent or control erosion thereon. 

1942 Code § 5806-108; 1937 (40) 242. 

§ 63-129. Provisions as to acquisitions; property tax free. 

No provisions with respect to the acquisition, operation or disposition of 
property by other public bodies of this State shall be applicable to a district 
organized under the provisions of this chapter unless the General Assembly 
shall specifically so state. The property and property rights of every kind 
and nature acquired by any district organized under the provisions of this 
chapter shall be exempt from State, county and other taxation. 

1942 Code § 5806-108; 1937 (40) 242. 

§ 63-130. Supervisors may cooperate with one another. 

The supervisors of any two or more districts organized under the provisions 
of this chapter may cooperate with one another in the exercise of any or all 
powers conferred in this chapter. 

1942 Code § 5806-112; 1937 (40) 242. 

§ 63-131. Consultation with governing bodies of nearby localities. 

The supervisors of any district may invite the legislative bod)' of any mu- 
nicipality or county located near the territory comprised within the district 
to designate a representative to advise and consult with the supervisors of 

240 



§ 63-132 Soil Conservation and Improvement § 63-143 

the district on all questions of program and policy which may affect the prop- 
erty, water supply or other interests of such municipality or county. 
1942 Code § 5806-107; 1937 (40) 242. 

§ 63-132. Information for State Committee. 

The supervisors shall furnish to the State Soil Conservation Committee, 
upon request, copies of such ordinances, rules, regulations, orders, contracts, 
forms and other documents as they shall adopt or employ and such other infor- 
mation concerning their activities as it may require in the performance of 
its duties under this chapter. 

1942 Code § 5806-107; 1937 (40) 242. 

Article 7. 
Land-use Regulations. 

§ 63-141. Formulation of land-use regulations. 

The supervisors of any district may formulate regulations governing the use 
of lands within the district in the interest of conserving soil and soil resources 
and preventing and controlling soil erosion. The supervisors may conduct 
such public meetings and public hearings upon tentative regulations as may 
be necessary to assist them in this work. 

1942 Code § 5806-109; 1937 (40) 242. 

§63-142. Referendum prior to adoption of such regulations; proposed ordi- 
nance; notice. 

The supervisors shall not have authority to enact such land-use regulations 
into law until after they shall have caused due notice to be given of their in- 
tention to conduct a referendum for submission of such regulations to the 
owners of lands lying within the boundaries of the district for their indication 
of approval or disapproval of such proposed regulations and until after the 
supervisors have considered the result of such referendum. The proposed 
regulations shall be embodied in a proposed ordinance. Copies of such pro- 
posed ordinance shall be available for the inspection of all eligible voters 
during the period between publication of such notice and the date of the 
referendum. The notice of the referendum shall recite the contents of such 
proposed ordinance or shall state where copies of such proposed ordinance 
may be examined. 

1942 Code § 5806-109; 1937 (40) 242. 

§ 63-143. Conduct of referendum on regulations. 

The question shall be submitted by ballots upon which the words, "For 

approval of proposed ordinance no. prescribing land-use regulations for 

conservation of soil and prevention of erosion" and "Against approval of pro- 
posed ordinance no. prescribing land-use regulations for conservation 

of soil and prevention of erosion" shall appear, with a square before each 
proposition and a direction to insert an X mark in the square before one or 
the other of such propositions as the voter may favor or oppose approval of 
[6SCCode] — 16 241 



§ 63-144 Code of Laws of South Carolina § 63-147 

such proposed ordinance. The supervisors shall supervise such referendum, 
shall prescribe appropriate regulations governing the conduct thereof and 
shall publish the result thereof. All owners of lands within the district shall 
be eligible to vote in such referendum. Only such landowners shall be eli- 
gible to vote. No informalities in the conduct of such referendum or in any 
matter relating thereto shall invalidate the referendum or the result thereof 
if notice thereof shall have been given substantially as provided in § 63-142 and 
the referendum shall have been fairly conducted. 
1942 Code § 5806-109; 1937 (40) 242. 

§ 63-144. Two-thirds vote prerequisite to adoption of regulations. 

The supervisors shall not have authority to enact such proposed ordinance 
into law unless at least two-thirds of the votes cast in such referendum shall 
have been cast for approval of the proposed ordinance. The approval of the 
proposed ordinance by two-thirds of the votes cast in such referendum shall 
not require the supervisors to enact such proposed ordinance into law. 

1942 Code § 5806-109; 1937 (40) 242. 

§ 63-145. Regulations to have effect of law. 

Land-use regulations prescribed in ordinances enacted pursuant to the pro- 
visions of this article by the supervisors of any district shall have the force 
and effect of law in the district and shall be binding and obligatory upon all 
owners and occupiers of land within such district, including the agencies 
administering publicly owned lands. 

1942 Code § 5806-109; 1937 (40) 242. 

§ 63-146. Amendment or repeal of regulations. 

Any owner or occupier of land within such district may at any time file a 
petition with the supervisors asking that any or all of the land-use regulations 
prescribed in any ordinance adopted by the supervisors under the provisions 
of this article shall be amended, supplemented or repealed. Land-use regula- 
tions adopted pursuant to the provisions of this article shall not be amended, 
supplemented or repealed except in accordance with the procedure prescribed 
in this article for adoption of land-use regulations. Referenda on adoption, 
amendment, supplementation or repeal of land-use regulations shall not be 
held more often than once in six months. 

1942 Code § 5806-109; 1937 (40) 242. 

§ 63-147. What regulations may include. 

The regulations to be adopted by the supervisors under the provisions of 
this article may include : 

(1) Provisions requiring the carrying out of necessary engineering opera- 
tions, including the construction of terraces, terrace outlets, check dams, dikes, 
ponds, ditches and other necessary structures; 

(2) Provisions requiring observance of particular methods of cultivation, 
including contour cultivating, contour furrowing, lister furrowing, sowing, 
planting, strip cropping, changes in cropping systems, seeding and planting of 

242 [6 SC Code] 



§63-148 Soil Conservation and Improvement §63-151 

lands with water-conserving and erosion-preventing plants, trees and grasses, 
forestation and reforestation ; 

(3) Specifications of cropping programs and tillage practices to be ob- 
served ; 

(4) Provisions requiring the retirement from cultivation of highly erosive 
areas or of areas on which erosion may not be adequately controlled if cul- 
tivation is carried on ; and 

(5) Provisions for such other means, measures, operations and programs 
as may assist conservation of soil resources and prevent or control soil erosion 
in the district, having due regard to the legislative findings set forth in § 63-53. 

1942 Code § 5806-109; 1937 (40) 242. 

§ 63-148. Uniformity of regulations. 

The regulations shall be uniform throughout the territory comprised with- 
in the district except that the supervisors may classify the lands within the 
district with reference to such factors as soil type, degree of slope, degree 
of erosion threatened or existing, cropping and tillage practices in use and 
other relevant factors and may provide regulations varying with the type or 
class of land affected, but uniform as to all lands within each class or type. 

1942 Code § 5806-109; 1937 (40) 242. 

§ 63-149. Printing of copies of regulations. 

Copies of land-use regulations adopted under the provisions of this article 
shall be printed and made available to all owners and occupiers of lands lying 
within the district. 

1942 Code § 5806-109; 1937 (40) 242. 

§ 63-150. Entry on lands to check observance. 

The supervisors may go upon any lands within the district to determine 
whether land-use regulations adopted under the provisions of this article 
are being observed. 

1942 Code § 5806-110; 1937 (40) 242. 

§ 63-151. Petition to court for enforcement. 

When the supervisors of any district shall find that any of the provisions 
of land-use regulations adopted in accordance with the provisions of this ar- 
ticle are not being observed on particular lands, and that such non-observance 
tends to increase erosion on such lands and is interfering with the prevention 
or control of erosion on other lands within the district, the supervisors may pre- 
, sent to the court of common pleas for the county or any county within which 
the lands of the defendant may lie a petition, duly verified, setting forth the 
adoption of the ordinance prescribing land-use regulations, the failure of the 
defendant landowner or occupier to observe such regulations and to perform 
particular work, operations or avoidances as required thereby and that such 
non-observance tends to increase erosion on such lands and is interfering with 
the prevention or control of erosion on other lands within the district and 
praying the court to require the defendant to perform the work, operations 

243 



§ 63-152 Code of Laws of South Carolina § 63-161 

or avoidances within a reasonable time and to order that if the defendant shall 
fail so to perform the supervisors may go on the land, perform the work or 
other operations or otherwise bring the condition of such lands into conformity 
with the requirements of such regulations and recover the costs and expenses 
thereof, with interest, from the owner of such land. 
1942 Code § 5806-110; 1937 (40) 242. 

§ 63-152. Hearing and order of court thereon. 

Upon the presentation of such petition the court shall cause process to be 
issued against the defendant and shall hear the case. If it shall appear to the 
court that testimony is necessary for the proper disposition of the matter, it 
may take evidence or appoint a referee to take such evidence as it may direct 
and report it to the court with his findings of fact and conclusions of law, 
which shall constitute a part of the proceedings upon which the determination 
of the court shall be made. The court may dismiss the petition or it may 
require the defendant to perform the work, operations or avoidances and may 
provide that, upon the failure of the defendant to initiate such performance 
within the time specified in the order of the court and to prosecute it to com- 
pletion with reasonable diligence, the supervisors may enter upon the lands 
involved and perform the work or operations or otherwise bring the condi- 
tion of such lands into conformity with the requirements of the regulations 
and recover the costs and expenses thereof, with interest at the rate of five 
per cent per annum, from the owner of such lands. 

1942 Code § 5806-110; 1937 (40) 242. 

§ 63-153. Judgment after completion of work. 

The court shall retain jurisdiction of the case until after the work has been 
completed. Upon completion of such work pursuant to such order of the 
court the supervisors may file a petition with the court, a copy of which shall 
be served upon the defendant in the case, stating the costs and expenses sus- 
tained by them in the performance of the work and praying judgment therefor 
with interest. The court shall have jurisdiction to enter judgment for the 
amount of such costs and expenses, with interest at the rate of five per cent 
per annum until paid, together with the costs of suit, including a reasonable 
attorney's fee to be fixed by the court. 

1942 Code § 5806-110; 1937 (40) 242. 

Article 8. 

Boards of Adjustment. 

§ 63-161. Appointment ; vacancies ; records. 

When the supervisors of any district organized under the provisions of this 
chapter shall adopt an ordinance prescribing land-use regulations in accord- 
ance with the provisions of article 7 of this chapter they shall further provide 
by ordinance for the establishment of a board of adjustment. Such board of 
adjustment shall consist of three members, each to be appointed for a term 
of three years, except that the members first appointed shall be appointed for 

244 



§63-162 Soil Conservation and Improvement §63-164 

terms of one, two and three years, respectively. The members of each such 
board shall be appointed by the State Soil Conservation Committee, with the 
advice and approval of the supervisors of the district for which such board has 
been established, and shall be removable, upon notice and hearing, for neglect 
of duty or malfeasance in office, but for no other reason, such hearing to be 
conducted jointly by the State Soil Conservation Committee and the super- 
visors of the district. Vacancies in the board shall be filled in the same manner 
as original appointments, and shall be for the unexpired term of the member 
whose term becomes vacant. 
1942 Code § 5806-111; 1937 (40) 242. 

§ 63-162. Eligibility and compensation of members ; expenses. 

Members of the State Soil Conservation Committee and the supervisors 
of the district shall be ineligible to appointment as members of the board dur- 
ing their tenure of such other office. The members of the board shall receive 
compensation for their services at a per diem rate to be determined by the 
State Committee for time spent on the work of the board, in addition to ex- 
penses, including traveling expenses, necessarily incurred in the discharge 
of their duties. The supervisors shall pay the necessary administrative and 
other expenses of operation incurred by the board upon the certificate of the 
chairman of the board. 

1942 Code § 5806-111 ; 1937 (40) 242. 

§ 63-163. Chairman, rules, meetings, records, etc. 

The board shall adopt rules to govern its procedures, which rules shall 
be in accordance with the provisions of this chapter and with the provisions 
of any ordinance adopted pursuant to article 7 of this chapter. The board 
shall designate a chairman from among its members and may, from time to 
time, change such designation. Meetings of the board shall be held at the 
call of the chairman and at such other times as the board may determine. Any 
two members of the board shall constitute a quorum. The chairman, or in 
his absence such other member of the board as he may designate to serve as 
acting chaiman, may administer oaths and compel the attendance of witnesses. 
All meetings of the board shall be open to the public. The board shall keep 
a full and accurate record of all proceedings, of all documents filed with it 
and of all orders entered, which shall be filed in the office of the board and 
shall be a public record. 

1942 Code § 5806-111; 1937 (40) 242. 

§63-164. Hardship petitions. 

A land occupier may file a petition with the board alleging that there are 
great practical difficulties or unnecessary hardship in the way of his carrying 
out upon his lands the strict letter of the land-use regulations prescribed by- 
ordinance approved by the supervisors and praying the board to authorize a 
variance from the terms of the land-use regulations in the application of such 
regulations to the lands occupied by the petitioner. Copies of such petition 
shall be served by the petitioner upon the chairman of the supervisors of the 

245 



§ 63-165 Code of Laws of South Carolina § 63-167 

district within which his lands are located and upon the chairman of the State 
Soil Conservation Committee. 
1942 Code § 5805-111; 1937 (40) 242. 

§ 63-165. Hearing and action on petition. 

The board shall fix a time for the hearing of the petition and cause due notice 
of such hearing to be given. The supervisors of the district and the State 
Soil Conservation Committee may appear and be heard at such hearing. Any 
occupier of lands lying within the district who shall object to the authorizing 
of the variance prayed for may intervene and become a party to the proceed- 
ings. Any party to the hearing before the board may appear in person, by 
agent or by attorney. If, upon the facts presented at such hearing, the board 
shall determine that there are great practical difficulties or unnecessary hard- 
ship in the way of applying the strict letter of any of the land-use regulations 
upon the lands of the petitioner, it shall make and record such determination 
and shall make and record findings of fact as to the specific conditions which 
establish such great practical difficulties or unnecessary hardship. Upon the 
basis of such findings and determination the board may by order authorize 
such variance from the terms of the land-use regulations, in their application 
to the lands of the petitioner, as will relieve such great practical difficulties or 
unnecessary hardship and will not be contrary to the public interest and such 
that the spirit of the land-use regulations shall be observed, the public health, 
safety and welfare secured and substantial justice done. 

1942 Code § 5806-111; 1937 (40) 242. 

§ 63-166. Petition for court review. 

Any petitioner, the supervisors of the district or any intervening party, 
aggrieved by an order of the board granting or denying, in whole or in part, 
the relief sought, may obtain a review of such order in the court of common 
pleas for the county or any county in which the lands of the petitioner may 
lie, by filing in such court a petition praying that the order of the board be 
modified or set aside. A copy of such petition shall forthwith be served upon 
the parties to the hearing before the board and thereupon the party seeking 
review shall file in the court a transcript of the entire record in the proceed- 
ings, certified by the board, including the documents and testimony upon 
which the order complained of was entered and the findings, determination 
and order of the board. 

1942 Code § 5806-111; 1937 (40) 242. 

§ 63-167. Hearing and order of court thereon. 

Upon such filing the court shall cause notice thereof to be served upon the 
parties, and shall have jurisdiction of the proceedings and of the questions de- 
termined or to be determined therein and may grant such temporary relief 
as it deems just and proper and make and enter a decree enforcing, modi- 
fying and enforcing as so modified or setting aside, in whole or in part, the 
order of the board. No contention that has not been urged before the board 
shall be considered by the court unless the failure or neglect to urge such con- 

246 



§63-167 



Soil Conservation and Improvement 



§63-167 



tention shall be excused because of extraordinary circumstances. The findings 
of the board as to the facts, if supported by evidence, shall be conclusive. If 
any party shall apply to the court for leave to produce additional evidence 
and shall show to the satisfaction of the court that such evidence is material 
and that there were reasonable grounds for the failure to produce such evi- 
dence in the hearing before the board the court may order such additional 
evidence to be taken before the board and made a part of the transcript. The 
board may modify its findings as to the facts or make new findings, taking 
into consideration the additional evidence so taken and filed, and it shall 
file such modified or new findings which, if supported by evidence, shall 
be conclusive and shall file with the court its recommendation, if any, for 
the modification or setting aside of its original order. The jurisdiction of 
the court shall be exclusive and its judgment and decree shall be final, ex- 
cept that it shall be subject to review in the same manner as are other judg- 
ments or decrees of the court. 
1942 Code § 5806-111; 1937 (40) 242. 



CHAPTER 3. 
Local Provisions.* 



Article 1. 

Bamberg County Soil Improvement and 
Development Commission. 
Sec. 

63-201. Appointment; terms; officers. 

63-202. Duty of commission. 

63-203. Charge for use of machinery. 

63-204. Disposition of moneys collected. 

63-205. Rules and regulations; allotment of 
services. 

63-206. Liability of Bamberg County. 

63-207. Mileage and per diem of commis- 
sioners. 

63-20S. Report to legislative delegation. 

Article 1.1. 

Preservation of Beaches in 

Charleston County. 

63-211. Governing body to control and co- 
operate with United States. 

Article 2. 

Cherokee County Agricultural Extension 
Board. 

63-221. Appointment, terms and compen- 
sation. 
63-222. Chairman and treasurer. 
63-223. Duties and powers. 



Sec. 
63-224. Authorization of purchases. 
63-225. Contracts for terracing, etc. 

Article 3. 

Chester County Soil Improvement and 
Development Commission. 

63-241. Creation, members, term and offi- 
cers. 

63-242. Mileage and per diem. 

63-243. Duties; charges for services and 
disposition thereof. 

63-244. Rules and regulations; allotment of 
services. 

63-245. Use of machinery. 

63-246. Purchase of machinery and equip- 
ment. 

Article 4. 

County Cooperative Soil Conservation 
Board, Edgefield County. 

63-251. Establishment; members; term. 
63-252. Compensation and liability of mem- 
bers. 
Secretary-treasurer; audit of books. 
Machinery, etc., to belong to coun- 
ty. 
Duties of board. 



63-253 
63-254 



63-255. 



* As to the development and conservation commission of Williamsburg County, see 
§§ 14-3581 to 14-3584. 

247 



Code of Laws of South Carolina 



Sec. 

63-256. Conservation plan. 

63-257. Contracts for terracing, etc. 

63-258. Cash payments required; disposi- 
tion and expenditure thereof. 

63-259. Lien for charges. 

63-260. Borrowing to purchase equipment. 

63-261. Pledge to pay notes; tax. 

63-262. Rules and regulations and general 
powers. 

63-263. Record of work done. 

63-264. Cooperation with other agencies. 

Article 5. 
Agricultural Board, Fairfield County. 

63-271. Appointment and term. 
63-272. Duties. 

62-273. Contracts for terracing, etc. 
63-274. Use of equipment. 
63-275. Rules and regulations. 

Article 6. 
Florence Soil Conservation District. 
63-281. Use of equipment. 

Article 7. 

Pawleys Island Erosion District, 
Georgetown County. 

63-291. Creation. 

63-292. Territory. 

63-293. Commission. 

63-294. Duties and powers. 

63-295. Erection of structures on State or 

county property. 
63-296. Acquisition of other property. 

Article 8. 
Greenville Soil Conservation District. 
63-301. Use and title to machinery. 

Article 9. 
Agricultural Board, Greenwood County. 

63-311. Appointment, compensation and 

term. 
63-312. Treasurer. 
63-313. Duties. 

63-314. Applications for land terracing. 
63-315. Supervisor to carry on work. 
63-316. Board to contract for terracing 

lands; rates. 
63-317. Terracing complete defined. 
63-318. Finance board to assist landowners 

to terrace their lands. 
63-319. County finance board may borrow 

such funds. 
63-320. Rules and forms. 



Article 10. 

Lancaster County Soil Conservation 
Association. 
Sec. 
63-331. Landowners may terrace lands and 
pay therefor in installments. 

Article 11. 

Soil Improvement and Development Com- 
mission, Lexington County. 

63-341. Appointment, term and chairman. 

63-342. Mileage; per diem. 

63-343. Development of unimproved lands. 

63-344. Charges to landowners and disposi- 
tion thereof. 

63-345. Rules and regulations; allotment of 
services. 

63-346. Obligations. 

63-347. Annual report. 

Article 12. 

County Cooperative Soil Conservation 
Board, McCormick County. 

63-361. Appointment and term. 

63-362. Compensation. 

63-363. Secretary and treasurer; audit. 

63-364. General duties. 

63-365. Contracts for terracing, etc. 

63-366. Board to require deposit before 

starting work. 
63-367. Record of use of equipment. 
63-368. Payments to county treasurer. 

Article 13. 
Agricultural Board, Newberry County. 

63-381. Appointment, term and compensa- 
tion. 

63-382. Secretary-treasurer of board. 

63-383. Duties. 

63-384. Contracts with farmers to terrace 
lands. 

63-385. Security for payments; security for 
county borrowings. 

63-386. Borrowing by county. 

63-387. Borrowing not limited to amount 
of contracts on land. 

63-388. Payments to county treasurers. 

63-389. Rules and regulations. 

Article 14. 

Oconee County Soil Conservation 
Association. 

63-401. County may lend to association. 

63-402. Loan to be revolving fund, not ex- 
ceeding ten thousand dollars. 

63-403. Security for payment of loan. 

63-404. Deposit and disbursement of funds; 
maximum expenditures. 

63-405. Borrowing for county for fund. 



248 



§ 63-201 



Soil Conservation and Improvement 



§ 63-201 



Article 15. 

Orangeburg Pasturage Development 
Commission. 



63-411. Establishment, appointment, term 
and chariman. 

63-412. Development of unimproved lands. 

63-413. Charges. 

63-414. Rules and regulations; allotment of 
services. 

63-41S. Commission not to create indebted- 
ness against county. 

63-416. Annual report. 

Article 16. 

Cooperative Soil Conservation Association 
Board, Saluda County. 

63-421. Creation; members and term. 

63-422. Treasurer. 

63-423. Duties of board. 

63-424. Contracts to terrace land for farm- 
ers. 

63-425. Member in charge of terracing con- 
tracts; compensation. 

63-426. Deposit prerequisite to work. 

63-427. Record of hours worked by equip- 
ment. 

63-428. Monthly accounting to county 
treasurer. 

63-429. Direct supervision of machinery by 
county chairman and compensa- 
tion therefor. 

63-430. Work of terracing crew and ulti- 
mate supervision of machinery. 



Article 17. 
Saluda County Pasturage Commission. 

63-441. Establishment, membership and 

term. 
63-442. Development of unimproved lands; 

charges. 
63-443. County not to be obligated. 
63-444. Rules and regulations. 
63-445. Annual report. 

Article 18. 

Union County. 

63-451. Terracing of certain lands. 
63-452. Application and estimate of cost. 
63-453. Deposit and terms of security for 
payment of balance. 

Article 19. 
Terracing Commission, York County. 

63-461. Appointment, terms and compensa- 
tion. 

63-462. Secretary and meetings. 

63-463. Bond of secretary. 

63-464. Employment of personnel. 

63-465. General powers; contracts and 
funds received thereunder. 

63-466. Commission may rent equipment. 

63-467. Contracts to terrace farm lands. 

63-468. Disbursements. 

63-469. Borrowing. 

63-470. Repayment of loans through rev- 
enue or tax. 

63-471. Report on finances. 



Article 1. 

Bamberg County Soil Improvement and Development Commission. 

§ 63-201. Appointment ; terms ; officers. 

A soil improvement and development commission for Bamberg County is 
established. The commission shall be composed of the county farm demon- 
stration agent of Bamberg County, the supervisor of the county soil con- 
servation district and five members to be appointed by the county legis- 
lative delegation, one to be named from each of the five magisterial districts 
of the county. The term of office of the five members so appointed from the 
magisterial district shall be for the period of five years from their respective 
appointments and until their respective successors are appointed and duly 
qualified, the original term of office of the five members first appointed having 
been for the period of one, two, three, four and five years, respectively, the 
length of the term of each determined by them by casting lots and a statement 
evidencing the term of each having been filed with the governing body of the 
county. At the first meeting of the commission a chairman and a secretary 
thereof shall be elected. 

1948 (45) 1936. 

249 



§ 63-202 Code of Laws of South Carolina § 63-207 

§ 63-202. Duty of commission. 

The commission shall be charged with fostering the development and drain- 
age of unimproved lands in the county and to this end may acquire with funds 
available to it machinery and equipment for use in the clearing, drainage and 
improvement of such lands. Such work shall be performed for individual land- 
owners and lessees of the county and shall be charged therefor at such rate as 
the commission may determine. 

1948 (45) 1936. 

§ 63-203. Charge for use of machinery. 

The commission shall charge such rate to landowners and lessees as will 
defray all costs and expenses of operation and maintenance of the machinery 
purchased by the commission and, in addition thereto, such an additional 
amount as will replace the machinery purchased by the commission at the end 
of the life expectancy of such machinery so purchased. 

1948 (45) 1936. 

§ 63-204. Disposition of moneys collected. 

All moneys collected from landowners and lessees under the provisions of 
this article shall be paid over to the clerk of the governing body of the county 
and kept by him in a separate fund. The clerk of the governing body of the 
county shall be the custodian of such funds and disburse the same under 
the direction of the commission. 

1948 (45) 1936. 

§ 63-205. Rules and regulations ; allotment of services. 

The commission shall adopt rules and regulations for the carrying out of the 
purposes of this article. It shall, so far as possible, provide for the equitable 
allotment of its services among the landowners of the county. 

1948 (45) 1936. 

§ 63-206. Liability of Bamberg County. 

The commission shall have no power to create any indebtedness or obliga- 
tion against the county, and the county shall not be liable in any suit or action 
for damages of any kind growing out of or connected with the operation of or 
management of any of the machinery or equipment under the control of the 
commission. 

1948 (45) 1936. 

§ 63-207. Mileage and per diem of commissioners. 

The members of the commission shall receive mileage from their residences 
to the town of Bamberg at the rate of five cents per mile while on attendance to 
the business of the commission and, in addition to said mileage, each member 
of the commission shall be paid a per diem while attending the business of the 
commission. Such mileage and per diem shall be paid from the funds coming 
into the hands of the commission under the provisions of this article. 

1948 (45) 1936; 1951 (47) 506. 

250 



§ 63-208 Soil Conservation and Improvement § 63-222 

§ 63-208. Report to legislative delegation. 

The commission shall annually, on or before January 1st of each year, make 
a report of its activities to the county legislative delegation in summary form 
including, but not limited to, receipts and disbursements of all funds coming 
into its hands and the services rendered to the landowners of the county under 
this article. 

1948 (45) 1936. 

Article 1.1. 

Preservation of Beaches in Charleston County. 

§ 63-21 1. Governing body to control and cooperate with United States. 

The governing body of Charleston County shall control and have authority 
over all beaches in the county insofar as may be necessary to prevent erosion 
and preserve such beaches. Said governing body shall cooperate and work 
with all agencies of the United States Government in an effort to preserve 
and maintain the beaches in the county. It may deal with the United States 
Government in the prevention of erosion and preservation of beaches in the 
county but shall exercise the authority conferred upon it by this section only 
in the event that there is no constituted State agency qualified to deal with 
the United States Government in the prevention of erosion and the preserva- 
tion of the beaches of the State. 

1942 Code §6147; 1932 Code §6147; Civ. C. '22 §3202; Civ. C. '12 §2275; 1907 (25) 524; 
1915 (29) 249; 1922 (32) 791; 1923 (33) 556; 1926 (34) 995; 1932 (37) 1110; 1938 (40) 1586. 

Article 2. 
Cherokee County Agricultural Extension Board. 

§ 63-221. Appointment, terms and compensation. 

There is created for Cherokee County a board to be known and designated 
as the Cherokee County agricultural extension board which shall be composed 
of five members who shall be selected and appointed by a majority of the 
county legislative delegation. The regular terms of office of the members of 
the board shall be for two years and until their successors have been duly 
selected and appointed, though of the initial members, two were appointed for 
two years and three for one year. The members of the board shall be paid a 
per diem for not exceeding twelve days during any one year. 

1942 Code § 5806-123; 1936 (39) 1467; 1951 (47) 506. 

§ 63-222. Chairman and treasurer. 

The members of the board shall organize by electing one of their number as 
chairman and by selecting a treasurer. The treasurer shall be required to ^i\ e 
a bond in such amount as may be fixed by the board for the faithful perform- 
ance of his duties as prescribed by the board. The books and accounts of the 
treasurer shall be deemed public books and records of the county and shall be 
audited as other public records of the county arc audited. 

1942 Code § 5S05-123; 1936 (39) 1467. 

251 



§ 63-223 Code of Laws of South Carolina § 63-241 

§ 63-223. Duties and powers. 

The board shall promote the conservation of the agricultural lands in Chero- 
kee County and prevent, as far as possible, soil erosion of such lands and to 
this end the board may establish such definite plans as in its judgment will 
accomplish such purpose and purchase such machinery, including tractors, 
terracing equipment or plows and heavy duty farm machinery, which shall be 
used in the promotion of the general policy outlined in this section. But no 
more than two units of power terracing equipment shall be purchased. 

1942 Code § S806-123; 1936 (39) 1467. 

§ 63-224. Authorization of purchases. 

All purchases by the board shall be pursuant to a resolution duly adopted 
and entered upon the minutes, which shall be kept and preserved by the treas- 
urer of the board. 

1942 Code § 5806-123; 1936 (39) 1467. 

§ 63-225. Contracts for terracing, etc. 

The board may contract with farm landowners for the services of an engi- 
neer in running and establishing lines of terracing and for the construction 
and building of terraces and for the doing of anything in connection therewith 
to conserve such lands from waste by surface water and may establish and fix 
a basis or rate of charge for all such services. The funds received under all 
such contracts shall, after the payment of the necessary operating expenses 
and the other expenses provided for in this section, be used to pay the prin- 
cipal and interest on the purchase of the machinery and equipment or the prin- 
cipal and interest on any sums borrowed to purchase any such machinery or 
equipment. 

1942 Code § 5806-123; 1936 (39) 1467. 

Article 3. 

Chester County Soil Improvement and Development Commission. 

§ 63-241. Creation, members, term and officers. 

For the purpose of encouraging and promoting the construction of ter- 
races, the clearing and drainage of pasture land and otherwise fostering all 
conservation practices a Chester County soil improvement and development 
commission is created. The commission shall be composed of the county 
farm demonstration agent, the supervisor of Chester County soil conservation 
district, who shall be members of the commission in an ex officio capacity, and 
five members to be selected by the Chester County farm bureau. The five 
members so selected shall come from different sections of the county and shall 
serve until their respective successors are appointed and duly qualified. The 
original terms of office of such five members to be so selected having been for 
periods of one, two, three, four and five years, respectively, the term of office 
of their successors shall be for five years each. 

1948 (45) 2086. 

252 



§ 63-242 Soil Conservation and Improvement § 63-246 

§ 63-242. Mileage and per diem. 

All members of the commission shall receive mileage for the miles traveled 
in the performance of their duties in carrying out the provisions of this article 
at the rate of five cents per mile and in addition to such mileage each member 
of the commission shall be paid a per diem for each day on which he attends 
the business of the commission, such mileage and per diem to be paid from 
funds coming into the hands of the commission under the provisions of this 
article. 

1948 (45) 2086; 1951 (47) 506. 

§ 63-243. Duties ; charges for services and disposition thereof. 

The commission shall perform such work as shall be deemed necessary to 
carry out the purposes of this article for individual landowners and lessees of 
Chester County and shall charge for such services as the commission shall de- 
termine. The commission shall charge such rates to landowners and lessees 
as will defray all costs and expenses of operations and maintenance of machin- 
ery contemplated to be purchased under the provisions of this article. All 
funds collected from landowners and lessees under the provisions of this article 
shall be paid over to the treasurer of Chester County, who shall be custodian 
of such funds and shall disburse them under directions of the commission. 

1948 (45) 2086; 1950 (46) 2364. 

§ 63-244. Rules and regulations ; allotment of services. 

The commission shall adopt rules and regulations for carrying out the pro- 
visions and purposes of this article and it shall, insofar as possible, provide 
for the equitable allotment of its services among the landowners of Chester 
County. 

1948 (45) 2086. 

§ 63-245. Use of machinery. 

When it is not deemed advisable to use such machinery as the commission 
may acquire for terracing, draining, clearing or other soil conservation prac- 
tices, the commission shall allow any such machinery to be used on the county 
roads of the county and the commission may enter into an agreement with 
the supervisor of roads and the governing body of the county for the use of 
such machinery on the county roads. But the use of such machinery for ter- 
racing, drainage or other soil conservation practices shall have priority over 
all road work. 

1948 (45) 2086. 

§ 63-246. Purchase of machinery and equipment. 

In order to carry out the purposes and provisions of this article the commis- 
sion shall acquire with funds made available to it machinery and equipment. 
In order to finance the purchase of such machinery and equipment by the com- 
mission the county auditor shall levy and the county treasurer shall collect 
a tax of one mill on all the taxable property of the county, except that the 
county auditor may eliminate this levy entirely upon written approval of a 

253 • 



§ 63-251 Code of Laws of South Carolina § 63-255 

majority of the county legislative delegation. The commission along with 
the county treasurer and with the written approval of a majority of the county 
legislative delegation may borrow funds for the purpose of purchasing machin- 
ery and may pledge for the payment thereof such revenue as may be derived 
or anticipated from any tax levied pursuant to this article and from any charges 
made for services rendered to landowners or lessees. 
1948 (45) 2086; 1950 (46) 2364. 

Article 4. 
County Cooperative Soil Conservation Board, Edgefield County. 

§ 63-251. Establishment; members; term. 

There shall be created in Edgefield County a county cooperative soil con- 
servation board consisting of five members, who shall be elected by the soil 
conservation association of the county and shall, before entering upon their 
duties as members of such board, be approved by the county legislative dele- 
gation. When so elected b}' such association and approved by the county leg- 
islative delegation their names shall be certified to the county treasurer and 
they shall serve for a period of two years and until their successors have been 
appointed and qualified. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-252. Compensation and liability of members. 

The members of the board shall receive, as pay for their services, a per 
diem, not to exceed twelve days in any calendar year, and such pay shall be 
paid from the funds in the hands of the secretary-treasurer of the board which 
are provided for in this article. No member of the board shall at any time 
be personally liable for any cause whatsoever by reason of his membership on 
the board. 

1942 Code § 5806-125; 1937 (40) 553; 1951 (47) 506. 

§ 63-253. Secretary-treasurer; audit of books. 

The county farm demonstration agent shall be ex officio secretary and 
treasurer of the board and shall keep the books and accounts of the board. 
The books of the secretary-treasurer shall be audited by a public accountant 
upon order of the county legislative delegation. 

1942 Code §5806-125; 1937 (40) 553. 

§ 63-254. Machinery, etc., to belong to county. 

All machinery purchased and other assets which may be acquired by the 
board shall be the property of and subject to the control of Edgefield County. 

1942 Code § 5806-125; 1937 (40) 553. 

§63-255. Duties of board. 

The duties of the board shall be to promote the control of erosion within 
Edgefield County and to promote other farm practices which will tend toward 
• 254 



§ 63-256 Soil Conservation and Improvement § 63-260 

the improvement of the farm land in the county and increase the taxable value 
thereof. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-256. Conservation plan. 

The board shall submit to the county legislative delegation its proposed 
plan by which it is to perform its duties under the provisions of this article 
and such plan shall be first approved by the county legislative delegation. 
Such plan may be changed from time to time in order to make it more feasible, 
upon the approval of the county legislative delegation. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-257. Contracts for terracing, etc. 

The board shall direct the work of the terracing program, enter into con- 
tracts with landowners for the terracing of their lands and perform such other 
agricultural services for farmers as may be practicable. All services so pro- 
vided for shall be paid for by the farmers or landowners benefited at a price 
to be fixed by the board, which shall be so fixed as to cover the operating ex- 
penses and overhead costs and provide a sufficient sum to meet the annual 
payments on the equipment purchased by the board. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-258. Cash payments required ; disposition and expenditure thereof. 

All work done or services rendered to any landowner by the board shall be 
for cash and no credit shall be extended to any individual. All funds re- 
ceived shall be promptly deposited with the county treasurer and all expendi- 
tures therefrom shall be made by proper voucher of the county treasurer, ap- 
proved by at least three members of the board. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-259. Lien for charges. 

In the event that any landowner shall apply for and receive benefits under 
this article and for any cause shall fail to pay the charges therefor, the board 
may file with the clerk of court for Edgefield County a statement showing the 
description of the land upon which such improvements were made and the 
amount due therefor and from the date of such filing such statement shall 
constitute a lien against the real estate so improved and owned by such land- 
owner in the county. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-260. Borrowing to purchase equipment. 

If it should be found advisable to purchase units of equipment additional to 
those originally purchased the board may borrow and the governing body of 
the county shall, upon receipt of a requisition from the board and also upon 
receipt of written authority by the county legislative delegation, borrow the 
sum requisitioned not exceeding six thousand dollars and make, execute and 
deliver a note or notes in such amount or amounts and having such maturity 

255 



§ 63-261 Code of Laws of South Carolina § 63-264 

dates as may be agreed upon by the governing body of the county and the 
county legislative delegation, such notes to bear interest at a rate not to ex- 
ceed five per cent per annum. At no time shall the outstanding obligations of 
the board exceed the sum of six thousand dollars. No such loan shall be made 
nor indebtedness incurred without the written approval of the county legisla- 
tive delegation. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-261. Pledge to pay notes ; tax. 

To secure payment of the notes authorized in § 63-260 to be issued by the 
governing body of the county, the funds provided in § 63-257 to be collected 
from those receiving the benefits of this article, after deducting the overhead 
costs and exepnses thereof, are pledged to the payment of such notes and in- 
terest thereon and in addition thereto the full faith, credit and taxing power 
of Edgefield County is pledged to the payment thereof and when it appears to 
the county treasurer that it is necessary to levy a tax for the payment of such 
notes, then the county auditor shall levy and the county treasurer shall col- 
lect a sufficient tax upon all the taxable property of the county to retire such 
notes with interest promptly as they become due. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-262. Rules and regulations and general powers. 

The board may adopt any and all necessary rules and regulations and do 
all things necessary to carry out the provisions of this article. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-263. Record of work done. 

The foreman in charge of the equipment of the board shall keep a record 
of the number of hours when such equipment was used on each farm on which 
terracing may be done under the provisions of this article and file a written 
report of such time at the end of each week in the office of the farm demonstra- 
tion agent of Edgefield County. Such record shall be open to the inspection of 
the public. 

1942 Code § 5806-125; 1937 (40) 553. 

§ 63-264. Cooperation with other agencies. 

The board may cooperate with any State or Federal agency engaging in 
conservation work for the purpose described in this article. 

1942 Code § 5806-125; 1937 (40) 553. 



256 



§63-271 Soil Conservation and Improvement §63-275 

Article 5. 
Agricultural Board, Fairfield County. 

§63-271. Appointment and term. 

There is created in Fairfield County an agricultural board consisting of five 
members who will receive their actual expenses while in the discharge of their 
duties and shall be appointed by a majority of the county legislative delega- 
tion for a term of two years commencing on May 30 in each even numbered 
year. 

1942 Code § 5806-126; 1936 (39) 1686. 

§ 63-272. Duties. 

The duties of the board shall be to promote the control of soil conservation 
within the county and to promote such other farm practices as will tend toward 
the improvement of farm lands in the county and the increase of the taxable 
values thereof. 

1942 Code § 5806-126; 1936 (39) 16S6. 

§ 63-273. Contracts for terracing, etc. 

The board shall, in cooperation with the soil conservation service now lo- 
cated at Winnsboro, enter into contracts with farmers for terracing and other 
aids to lands and contract with the farmers for the use of the equipment owned 
by the board and fix the price per hour for the use of such equipment. Such 
price shall be sufficient to pay for all operating expenses and of a sufficient 
amount so that, as long as the board shall be indebted under the provisions 
of section 3 of Act 920 of 1936 Acts and Joint Resolutions, one dollar per hour 
shall be paid to the county treasurer to be used by him solely for the purpose 
of paying off such indebtedness. 

1942 Code § 5806-126; 1936 (39) 1686. 

§ 63-274. Use of equipment. 

The equipment owned by the board shall only be used for the purpose of 
improving lands situate in Fairfield County and at the expiration of this work, 
the time to be determined by the board in cooperation with the soil conserva- 
tion service, all equipment so purchased shall be delivered to the county super- 
visor to be used by him for general county work and any and all funds on hand 
in the county treasurer's hands shall be placed by the county treasurer in the 
general fund for the county. 

1942 Code §5806-126; 1936 (39) 1686. 

§63-275. Rules and regulations. 

The board, along with the soil conservation service at Winnsboro, shall adopt 
such rules and forms to be used in carrying out the terms of this article as 
shall be necessary. 

1942 Code § 5806-126; 1936 (39) 1686. 



[6 SC Code] — 17 257 



§ 63-281 Code of Laws of South Carolina § 63-293 

Article 6. 
Florence Soil Conservation District. 

§63-231. Use of equipment. 

The machinery purchased pursuant to Act No. SOS of 1949 (Acts 1949, p. 
1205) shall be the property of Florence County but shall be used by the super- 
visors of the Florence soil conservation district in draining farm lands and 
public property in the county upon such terms and conditions as shall be 
stipulated by the supervisors and, when such machinery is not in use by the 
supervisors for the purposes set forth in this section, it shall be available to 
the governing body of Florence County for work upon the roads of the county 
upon the same terms and conditions as those on which it is used in the drain- 
age of farm lands. A monthly report shall be rendered by the supervisors of 
the Florence soil conservation district to the county legislative delegation 
giving in detail the use of such machinery during the month covered by the 
report and the funds received by the supervisors from such drainage machin- 
ery. 

1949 (46) 1205; 19S0 (46) 3056. 

Article 7. 
Pawleys Island Erosion District, Georgetown County. 

§ 63-291. Creation. 

There is created and established in Georgetown County a district to be 
known as the Pawleys Island erosion district, which shall be a body politic 
and corporate and shall exercise and enjoy all the rights and privileges of such 
and shall have the duties, powers, functions and authority provided in this 
article. 

1948 (45) 2641. 

§ 63-292. Territory. 

Said district shall include and be comprised of the territory and area in 
Georgetozvn County known as Pawleys Island. 

1948 (45) 2641. 

§ 63-293. Commission. 

Said district shall be governed by a commission to be known as the Pawleys 
Island erosion commission, which shall be composed of three residents of 
Georgetozvn County, at least one of whom shall reside in the district, all of 
whom shall be appointed by the Governor upon the recommendation of the 
Senator and a majority of the members of the House of Representatives for 
Georgetown County. The terms of the original appointees having been for two, 
four and six years, respectively, and until their successors shall have been 
appointed and shall qualify, each member of the commission hereafter ap- 
pointed shall hold office for six years and until his successor shall have been 
appointed and shall qualify. Any vacancy, however occurring, shall be filled 
for the unexpired term in the manner of the original appointment. Immediate- 

258 [6SCCode] 



§ 63-294 Soil Conservation and Improvement § 63-296 

ly upon their appointment they shall meet and organize by electing a chair- 
man and a secretary from their number. 
1948 (45) 2641. 

§ 63-294. Duties and powers. 

The commission shall be charged with the function of making a study of 
the problem of the erosion of the beaches in the district and the ways of re- 
tarding or preventing such erosion. It may acquire, construct, erect, main- 
tain and repair such groins or other structures and employ such other means 
as it shall determine to be necessary or advisable to protect such beaches from 
the encroachment of the ocean and to retard or prevent the erosion, wasting 
away or destruction by the ocean of such beaches and the land and public 
roads adjacent or leading thereto. It may purchase such materials, supplies 
and equipment and employ or retain such personnel, clerical, mechanical, 
technical and professional, as it may find to be necessary or appropriate to 
carry out its duties and functions under this article. It may cooperate with 
the United States of America, the State and the county, or any of them, and 
with any agencies, departments, boards and commission of any of them, in 
the study of the problem of such erosion, the development of plans to protect 
the beaches against such erosion and in the acquisition, construction, erection, 
maintenance and repair of such groins or other structures or the employment 
of other means determined to be necessary or advisable to retard or prevent 
the erosion, wasting awaj' or destruction of the beaches, land and public roads. 
It may expend funds raised for it by taxation in the district and receive and 
expend funds from any other source, public or private, for any of the fore- 
going purposes or as otherwise provided for in this article. 

1948 (45) 2641. 

§ 63-295. Erection of structures on State or county property. 

Consent is given to the Pawleys Island erosion commission to construct 
or erect such groins or other structures on any property belonging to or under 
the jurisdiction of the State or of Georgetown County. 

1948 (45) 2641. 

§ 63-296. Acquisition of other property. 

The commission may acquire any other property which may be necessary 
to carry out the duties and functions of the commission under this article 
by purchase, negotiation, or condemnation and, should it elect to exercise the 
power of eminent domain, condemnation proceedings shall be maintained by 
and in the name of the commission and it may proceed in the manner provided 
by the general laws of the State for procedure by any county, municipality or 
authority organized under the laws of this State, by the State Highway De- 
partment, by railroad corporations or in any other manner provided by law, as 
the commission may, in its discretion, elect. The power of eminent domain 
granted by this section shall apply not only as to all property of private per- 
sons or corporations but also as to property already devoted to public use. 

1948 (45) 2641. 

259 



§ 63-301 Code of Laws of South Carolina § 63-314 

Article 8. 
Greenville Soil Conservation District. 

§ 63-301. Use and title to machinery. 

The board of supervisors of the Greenville soil conservation district may 
purchase the required machinery, make rules and regulations for the opera- 
tion thereof and supervise the same, may charge and collect reasonable fees 
for terracing and may disburse the funds in payment of operation costs and 
maintenance of the machinery and in repayment of the loan from Greenville 
County made pursuant to Act No. 198 of 1947 (Acts 1947, p. 277). Title 
to the machinery purchased under this authority shall remain in Greenville 
County until such loan is paid in full. 

1947 (45) 277. 

Article 9. 
Agricultural Board, Greenwood County. 

§ 63-311. Appointment, compensation and term. 

There is created for Greenwood County an agricultural board consisting of 
five members. Tbese men shall be selected by a majority of the county legis- 
lative delegation. They shall be paid a per diem for not exceeding twelve 
meetings. Their term of office shall be two years or until January 1st follow- 
ing the election of the county legislative delegation in regular election years, 
two of the first board having been appointed for two years and three for one 
year. 

1942 Code § 5306-127; 1935 (39) 913; 1939 (41) 188; 1951 (47) 506. 

§ 63-312. Treasurer. 

The board shall elect a treasurer who shall be under bond, the amount to be 
determined by the board, and shall keep the books and accounts of the board. 
The books of the treasurer shall be audited periodically by a certified public 
accountant and upon order by the county delegation. 

1942 Code § 5806-127; 1935 (39) 913; 1939 (41) 188. 

§ 63-313. Duties. 

The duties of the board shall be to promote the control of erosion within 
Greenwood County and to promote such other farm practices as will tend 
toward the improvement of farm lands and the increase of taxable values of 
those lands. 

1942 Code § 5806-127; 1935 (39) 913; 1939 (41) 188. 

§ 63-314. Applications for land terracing. 

All applications on the part of landowners for land terracing work shall be 
first made to the agricultural board for Greenivood County. Before an appli- 
cation shall be approved the estimated cost of the work shall be first paid to the 
board which shall in turn deliver it to the supervisor of Greenwood County. 
But any farmer entitled to receive benefits under the Agricultural Adjustment 

260 



§ 63-315 Soil Conservation and Improvement § 63-318 

Administration may make assignment of such benefit that he is entitled to 
receive in the future to the board in payment of the estimated cost of such 
work. 

1942 (42) 1593. 

§ 63-315. Supervisor to carry on work. 

The supervisor of Greenwood County, upon the certificate of the board that 
an application has been made and approved, shall carry on the work of ter- 
racing the land covered by such application. 

1942 (42) 1598. 

§ 63-316. Board to contract for terracing lands; rates. 

The board, in accordance with the terms of this article, will enter into con- 
tracts with farmers for the terracing of their lands. In entering into these 
contracts the sum of not less than three dollars per hour shall be charged for 
the estimated number of hours, so that not less than one and one-half dollars 
per hour can be repaid to the county sinking fund for materials and equipment 
supplied with funds obtained from the sinking fund. 

1942 (42) 1598. 

§ 63-317. Terracing complete defined. 

It is declared that land terracing upon any landowner's farm is complete 
when the work has been approved by the soil conservation agency of the Fed- 
eral Government. 

1942 (42) 1598. 

§ 63-318. Finance board to assist landowners to terrace their lands. 

The board of finance of Greenwood County may assist the landowners in 
financing the terracing of their lands. Landowners to obtain this assistance 
shall make written application to the county agricultural board for the terrac- 
ing of their lands. The county agricultural board shall order the county engi- 
neer in charge to make an estimate of the cost of terracing of the applicant's 
land. Such estimate shall be submitted to the county agricultural board for 
approval or disapproval. If approved, such landowner shall deposit twenty- 
five per cent of such estimate with his application to the county finance board 
for its approval or disapproval. If approved by the county finance board, 
the balance shall be paid in three equal annual installments, such deferred 
payments to be secured by a levy assessed against the whole tract of land 
whether partially or fully terraced and to bear an interest rate not exceeding 
six per cent per annum from the date the work on the applicant's farm is 
completed. Such levy shall be charged by the county auditor and collected 
by the county treasurer in the same manner and at the same time State and 
county taxes are collected. The first deferred payment shall be due and pay- 
able upon the next succeeding taxable year. 

1942 Code § 5806-127; 1935 (39) 913; 1939 (41) 18S. 

261 



§63-319 Code of Laws of South Carolina §63-341 

§ 63-319. County finance board may borrow such funds. 

The county finance board may borrow such funds against the levy assessed 
against the land at whatsoever source may bear the cheapest rate of interest. 
The county finance board may charge a rate of not exceeding two per cent per 
annum for the handling charge of this loan. 

1942 Code § 5806-127; 193S (39) 913; 1939 (41) 1SS. 

§ 63-320. Rules and forms. 

The rules and forms to be used in carrying out this article by the agricultural 
board shall be approved by the finance board of Greenwood County. 

1942 Code § 5806-127; 1935 (39) 913; 1939 (41) 188; 1947 (45) 277. 

Article 10. 
Lancaster County Soil Conservation Association. 

§ 63-331. Landowners may terrace lands and pay therefor in installments. 

Lancaster County may enter into contracts through the medium of the soil 
conservation association with the landowners of the county to assist the land- 
owners in financing the terracing of their lands. The landowners to obtain 
this assistance shall make written application to the soil conservation associa- 
tion for the terracing of their lands. The soil conservation association shall 
order the engineer in charge to make an estimate of the cost of terracing the 
applicant's land. Such estimate shall be submitted to the soil conservation 
association for approval or disapproval. If approved, such landowner shall 
deposit twenty-five per cent of such estimate with his application to the county 
treasurer. The balance shall be paid in three equal annual installments, such 
deferred payments to be secured by a levy assessed against the whole tract of 
land whether partially or fully terraced and to bear interest at the rate of four 
per cent per annum from the date the work on the applicant's farm is com- 
pleted. Such levy shall be charged by the county auditor and collected by the 
county treasurer in the same manner and at the same time as State and county 
taxes are collected. The first deferred payment shall be due and payable in 
the next succeeding taxable year. 

1942 Code § 5806-130; 1938 (40) 1675. 

Article 11. 
Soil Improvement and Development Commission, Lexington County. 

§ 63-341. Appointment, term and chairman. 

A soil improvement and development commission for Lexington County is 
created and established, composed of seven members, one to be named from 
each of the five magisterial districts of the county. The other two members 
shall be directors of the Congaree soil conservation district who reside in 
Lexington County. The term of office of the members of the commission shall 
be for a period of two years and until their successors are appointed. The five 
members to be selected from each of the five magisterial districts shall be 
elected by a majority of the county legislative delegation and their successors 

262 



§ 63-342 Soil Conservation and Improvement § 63-347 

in office shall likewise be elected by a majority of the comity legislative dele- 
gation. The commission at its first meeting shall elect a chairman. 
1948 (45) 2025. 

§63-342. Mileage; per diem. 

The members of the commission shall receive mileage from their residences 
to the town of Lexington at the rate of five cents per mile while on attendance 
of the business of the commission and, in addition to such mileage, each 
member of the commission shall be paid a per diem for each day he attends 
the business of the commission. Such mileage and per diem shall be paid from 
the funds coming into the hands of the commission under the provisions of 
this article. 

1948 (45) 2025; 1951 (47) 506. 

§ 63-343. Development of unimproved lands. 

The commission shall be charged with fostering the development of unim- 
proved lands in Lexington County and to this end may acquire with funds 
available to it machinery and equipment for use in the clearing and im- 
provement of such lands. Such work shall be performed for individual land- 
owners and lessees of Lexington County. 

1948 (45) 2025. 

§ 63-344. Charges to landowners and disposition thereof. 

The commission shall charge such rates to landowners and lessees as will 
defray all costs and expenses of operation and maintenance of the machinery 
purchased by it and, in addition thereto, such an additional amount as will 
replace the machinery purchased at the end of the life expectancy of such 
machinery so purchased. All moneys collected from landowners and lessees 
under the provisions of this article shall be paid over to the clerk of the gov- 
erning body of the county and by him kept in a separate fund. The clerk of 
the governing body of the county shall be the custodian of such funds and 
disburse them under the direction of the commission. 

1948 (45) 2025. 

§ 63-345. Rules and regulations ; allotment of services. 

The commission shall adopt rules and regulations for carrying out the 
purposes of this article. It shall, so far as possible, provide for the equitable 
allotment of its services among the landowners of the county. 

1948 (45) 2025. 

§ 63-346. Obligations. 

The commission shall have no power to create any indebtedness or obliga- 
tion against Lexington County. 

1948 (45) 2025. 

§ 63-347. Annual report. 

The commission shall annually, on or before January 1st of each year, make 
a report of its activities to the county legislative delegation in summary form, 

263 



§ 63-361 Code of Laws of South Carolina § 63-365 

including, but not limited to, receipts and disbursements of all funds coming 
into its hands and the services rendered to the landowners of the county under 
this article. 
1948 (45) 2025. 

Article 12. 

County Cooperative Soil Conservation Board, McCormick County. 

§ 63-361. Appointment and term. 

There is created in McCormick County a county cooperative soil conserva- 
tion board consisting of three members. The three members shall be elected 
or appointed by the county legislative delegation and shall serve for a period 
of two years and until their successors have been appointed and qualified. 

1942 Code § 5806-131; 1937 (40) 396. 

§ 63-362. Compensation. 

The members of the board shall receive as pay for their services a per diem 
for not to exceed twelve days in any calendar year. 

1942 Code § 5806-131; 1937 (40) 396; 1951 (47) 506. 

§ 63-363. Secretary and treasurer ; audit. 

The county farm demonstration agent shall be ex officio secretary of the 
board and shall keep the books and accounts of the board. One of the members 
of the board shall be named as treasurer of the board. The books of the 
treasurer shall be audited by a public accountant upon order of the county 
legislative delegation. 

1942 Code § 5806-131; 1937 (40) 396. 

§ 63-364. General duties. 

The duties of the board shall be to promote the control of erosion within 
McCormick County and to promote such other farm practices as will tend 
toward the improvement of the farm land and the increase of the taxable 
value thereof. 

1942 Code § 5806-131; 1937 (40) 396. 

§ 63-365. Contracts for terracing, etc. 

The conservation board will direct the work of the terracing program, 
enter into contracts with farmers for the terracing of their land and contract 
with the farmers for the use of other heavy duty equipment in a cooperative 
manner. In entering into these contracts, the price per hour charged farmers 
will be such that not less than one dollar per hour can be repaid to the county 
treasurer for the purpose of liquidating the payment of the notes issued for 
the purchase of the equipment of the board. In arriving at the additional 
charge, the price per hour shall be such that the labor, costs, fuel, grease and 
repairs to the equipment shall be taken care of. 

1942 Code § 5806-131; 1937 (40) 396. 

264 



§ 63-366 Soil Conservation and Improvement § 63-382 

§ 63-366. Board to require deposit before starting work. 

The conservation board, before entering into a contract with any farmer 
to do terracing upon his lands, shall first make an estimate of the cost of such 
terracing to the farmer and shall at the time of entering into the contract and 
before any of the work is done require a sufficient deposit to be placed with the 
board to pay the entire cost of the terracing contemplated to be done upon the 
farm. 

1942 Code § 5806-131; 1937 (40) 396. 

§ 63-367. Record of use of equipment. 

The foreman in charge of the terracing equipment shall keep a record of 
the number of hours such equipment is used on each and every farm on 
which terracing is done under the provisions of this article and file a written 
report thereof at the end of each week in the office of the farm demonstration 
agent of the county. 

1942 Code § 5806-131; 1937 (40) 396. 

§ 63-368. Payments to county treasurer. 

The treasurer of the conservation board shall, at the end of each calendar 
month, report to the county treasurer, in writing, the number of hours that 
the equipment has been used during the month and shall pay over to the 
county treasurer the sum of one dollar per hour for the time the equipment 
was used in such month, and such sum shall be held by the county treasurer 
in a separate account to be applied by him to the payment of the notes above 
mentioned and interest thereon. 

1942 Code § 5806-131; 1937 (40) 396. 

Article 13. 
Agricultural Board, Neivberry County. 

§ 63-381. Appointment, term and compensation. 

There shall be created for Neivberry County an agricultural board consist- 
ing of five members. The members of the board shall be appointed by a 
majority of the county legislative delegation and shall serve for a period of 
two years and until their successors shall have been appointed and qualified. 
They shall be paid a per diem for not exceeding twelve days per year. 

1942 Code § 5806-132; 1939 (41) 188; 1940 (41) 1669; 1951 (47) 506. 

§ 63-382. Secretary-treasurer of board. 

The board shall elect a secretary-treasurer who shall be under bond to be 
approved by the board. The duties of the secretary-treasurer shall be to keep 
the books and records of the board and to conduct the business of the board 
as directed by the board. A report of the workings of the board shall be made 
annually or at the request of the county legislative delegation. 

1942 Code § 5806-132; 1939 (41) 188; 1940 (41) 1669. 

265 



§ 63-383 Code of Laws of South Carolina § 63-387 

§ 63-383. Duties. 

The duties of the board shall be to promote the control of erosion within 
Newberry County and, in cooperation with agencies of the Federal Govern- 
ment, to terrace the farm lands and do such other work for the improvement 
of agriculture in the county as may be outlined by any such Federal agency. 

1942 Code § 5806-132; 1939 (41) 188; 1940 (41) 1669. 

§ 63-384. Contracts with farmers to terrace lands. 

The board may enter into contracts with farmers to terrace their lands. 
Such contracts shall provide that the costs and expenses thereof shall be 
paid in five equal installments, the first to be paid as soon as the work is 
completed and the remaining installments to be paid annually thereafter. 
All unpaid installments shall bear interest from date until paid at as low a 
rate of interest as available not to exceed five per cent per annum. 

1942 Code § 5806-132; 1939 (41) 188; 1940 (41) 1669. 

§ 63-385. Security for payments ; security for county borrowings. 

As soon as the costs and expenses of the contemplated improvements to 
any farm are determined the applicant shall give security over the land, or 
any portion of which is to be improved, or any other security that the board 
and the county treasurer may deem ample for the payment of such costs 
and expenses under the terms of his contract. All such obligations shall 
stand as security for the payment of any moneys borrowed by the county for 
the purchase of machinery and for any expenses incurred in making the 
improvement. The obligations and the security, except as otherwise specified, 
shall be in such forms as the board may prescribe. 

1942 Code § 5806-132; 1939 (41) 188; 1940 (41) 1669. 

§ 63-386. Borrowing by county. 

In order to carry out the program outlined in this article, the county treas- 
urer shall, upon the application of the board, borrow not exceeding ten thou- 
sand dollars and pledge as security therefor the obligations of farmers made 
to the board under the provisions of this article. Any obligation on the part 
of the county made under the provisions of this section may be renewed in 
whole or in part from time to time provided that at no one time shall the 
outstanding indebtedness of the county exceed ten thousand dollars. The 
proceeds of such loans obtained on obligations executed by the county treasurer 
shall be deposited to the credit of the board to be expended by it in carrying out 
the purposes of this article. 

1942 Code § 5S06-132; 1939 (41) 188; 1940 (41) 1669. 

§ 63-387. Borrowing not limited to amount of contracts on land. 

The funds authorized to be borrowed by the treasurer by § 63-386 are not 
limited in amount to the sums represented by contracts executed and actually 
in the hands of the board but are limited to the sum so represented plus 
contracts which the board reasonably expects to have in hand during that 
particular year. This matter is left, except as limited in this section, to the 

266 



§ 63-388 Soil Conservation and Improvement § 63-402 

sound business judgment and discretion of the board and the county treasurer, 
the intent being tbat no obligation shall be created on the part of the county 
unless there is a reasonable expectation that the income accruing to the board 
shall be sufficient to retire any such obligation. 
1942 Code § 5806-132; 1939 (41) 188; 1940 (41) 1669. 

§ 63-388. Payments to county treasurers. 

The sums realized by the board under the contracts and security made and 
pledged to it by the owners of real property shall from time to time be paid 
over to the county treasurer who shall in turn apply them to the payment 
of any principal and interest due by the county on obligations incurred under 
the provisions of this article. 

1942 Code § S806-132; 1939 (41) 188; 1940 (41) 1669. 

§ 63-389. Rules and regulations. 

Rules and regulations for carrying out the provisions of this article by the 
board shall be approved by the county legislative delegation. 

1942 Code § 5806-132; 1939 (41) 188; 1940 (41) 1669. 

Article 14. 
Oconee County Soil Conservation Association. 

§ 63-401. County may lend to association. 

The treasurer and supervisor of Oconee County shall from year to 3 r ear 
lend the Oconee County soil conservation association a sum of money not 
to exceed ten thousand dollars in any one year, to be used by the association 
for erosion control in Oconee County. The loan to the association shall be 
made upon the following terms, to wit : the loan made in any given year 
shall be payable on or before June 30th of the following year; it shall be evi- 
denced by the note of the Oconee County soil conservation association, exe- 
cuted by its president, secretary and treasurer; and the note shall bear interest 
at not exceeding four per cent per annum. 

1942 Code § 5806-133; 1942 (42) 1440. 

§ 63-402. Loan to be revolving fund, not exceeding ten thousand dollars. 

It is the intent of this article that the sum of money authorized by §§ 63-401 
and 63-405 to be borrowed and lent to the Oconee County soil conservation 
association shall be a revolving fund, the loan to be made to the association 
from year to year. But the indebtedness of the association to the county and 
the money to be borrowed by the county shall never, at any time, exceed the 
sum of ten thousand dollars. If the association fully discharges its obligation 
of one year to the county a loan not exceeding ten thousand dollars may be 
made to the association in the succeeding year. If the obligation of the asso- 
ciation to the county is not fully discharged in any one year, the difference 
between the amount remaining due and unpaid and the sum of ten thousand 
dollars may be lent by the treasurer and the supervisor to the association for 
the succeeding year. 

1942 Code § 5806-133; 1942 (42) 1440. 

267 



§63-403 Code of Laws of South Carolina §63-411 

§ 63-403. Security for payment of loan. 

To insure the payment of such note with Interest when and as the note 
shall fall due the Oconee County soil conservation association shall deposit 
with the county treasurer as collateral to such note and the treasurer shall ac- 
cept from landowners or operators, who are having the association build 
terraces on their lands, a written assignment of the Federal Government Agri- 
cultural Adjustment Administration soil building practice payment for ter- 
racing which shall or may become due to each of the farmers or operators 
so served. 

1942 Code § 5806-133; 1942 (42) 1440. 

§ 63-404. Deposit and disbursement of funds ; maximum expenditures. 

The sums of money which the treasurer and supervisor may, under this 
article, lend to the Oconee County soil conservation asssociation shall be de- 
posited with the county treasurer, kept in a separate account by him and 
paid out on warrants drawn by the president, secretary and treasurer of the 
Oconee County soil conservation association. The money so borrowed shall 
be spent at the discretion of the board of directors and officers of the Oconee 
County soil conservation association for equipment, repairs, operating ex- 
pense and any other expense necessarily incident to carrying forward the 
work of erosion control in Oconee County. No expenditure, however, except 
for equipment and repairs to equipment, shall at any time be made by the 
Oconee County soil conservation association in excess of contracts for 
terrace building or erosion control which the Oconee County soil conservation 
association shall have in hand with landowners or operators. 

1942 Code § 5806-133; 1942 (42) 1440. 

§ 63-405. Borrowing for county for fund. 

The treasurer and supervisor of Oconee County may, for the purposes of 
carrying out the provisions of this article, borrow in the name of Oconee 
County a sum of money not to exceed ten thousand dollars at a rate of interest 
not to exceed four per cent and execute in the name of the county its note 
therefor, payable on or before June 30th of the calendar year succeeding the 
year in which the money is borrowed. To insure the payment thereof, both 
principal and interest, the treasurer and supervisor may pledge the assign- 
ments of soil building practice payments held by the treasurer and the full 
faith, credit and taxing power of the county to the payment thereof. 

1942 Code § 5806-133; 1942 (42) 1440. 

Article 15. 

Orangeburg Pasturage Development Commission. 

§ 63-411. Establishment, appointment, term and chairman. 

The Orangeburg pasturage development commission is established. It 
shall consist of five members, one member from each highway district in the 
county. The initial members of the committee from the western district, 
having served for one year, from the northern and eastern districts for two 

268 



§63-412 Soil Conservation and Improvement §63-416 

years and from the southern and Fork districts for three years and until 
their successors were appointed and qualified, the successors in office of the 
initial and subsequent members shall be appointed by the Governor upon 
the recommendation of the Senator and a majority of the members of the 
House of Representatives from Orangeburg County and shall serve for a 
term of two years and until their successors are appointed and qualify. One 
member shall be elected by the commission to serve as chairman. 
1947 (45) 214. 

§ 63-412. Development of unimproved lands. 

The commission shall be charged with fostering the development of un- 
improved lands in Orangeburg County and to this end ma}' acquire with funds 
available to it machinery and equipment for use in the clearing and improve- 
ment of such lands. Such work shall be performed for individual landowners 
of the county who shall be charged therefor at such rate as the Commission may 
determine. 

1947 (45) 214. 

§ 63-413. Charges. 

The commission in fixing the rates of charges to landowners shall include 
at least the sum of two dollars per hour which shall be paid quarterly to the 
treasurer of Orangeburg Count}' in reimbursement of the amount heretofore 
appropriated for the purchase of machinery and equipment for this Commis- 
sion and shall defray all other costs of operation, including salaries, fuel and 
repairs, out of the balance of charges made by it. 

1947 (45) 214. 

§ 63-414. Rules and regulations ; allotment of services. 

The commission shall adopt rules and regulations for carrying out the 
purposes of this article. It shall, so far as possible, provide for the equitable 
allotment of its services among the landowners of the county. 

1947 (45) 214. 

§ 63-415. Commission not to create indebtedness against county. 

The commission shall have no power to create any indebtedness or obliga- 
tion against Orangeburg County. 

1947 (45) 214. 

§ 63-416. Annual report. 

The commission shall annually, on or before January 1st of each year, 
make a report of its activities in summary form, including, but not limited to, 
receipts and disbursements of all funds coming into its hands and the services 
rendered to the landowners of the county under this article. 

1947 (45) 214. 



269 



§ 63-421 Code of Laws of South Carolina § 63-425 

Article 16. 
Cooperative Soil Conservation Association Board, Saluda County. 

§ 63-421. Creation ; members and term. 

There is created for Saluda County a county cooperative soil conservation 
association board, consisting of three members to be selected by the Saluda 
County cooperative soil conservation association from the membership of 
said association. The term of office of the members shall be for a period of 
one year from the date of their selection and until their successors are elected. 
The association, through its duly authorized officers, shall certify to the county 
treasurer the names of three members who shall be designated as the board, 
together with the date of their selection. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240. 

§ 63-422. Treasurer. 

The board so selected shall elect a treasurer who shall be under bond, the 
amount of which shall be determined by the board. The treasurer so elected 
shall keep the books and accounts of the board. The books of the treasurer 
shall be audited upon the order of the county legislative delegation. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240. 

§ 63-423. Duties of board. 

The duties of the board shall be to promote the control of erosion within 
Saluda County and to promote such farm functions as will tend toward the 
improvement of the farm land and the increase of the taxable value thereof. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240. 

§ 63-424. Contracts to terrace lands for farmers. 

The board shall direct the work of the terracing program, enter into con- 
tracts with farmers for the terracing of their land and contract with the farm- 
ers for the use of other heavy duty equipment in a cooperative manner. In 
entering into these contracts the price per hour charged farmers will be such 
that not less than one dollar per hour can be repaid to the county treasurer 
for the purpose of liquidating the payment of the notes heretofore authorized 
to be issued in payment for equipment purchased. In arriving at the additional 
charge, the price per hour shall be such that the labor, costs, fuel, grease and 
repairs to the equipment shall be taken care of. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240. 

§ 63-425. Member in charge of terracing contracts ; compensation. 

The board may designate one of its members to be in the active charge of 
the matter of making contracts with farmers for terracing their lands and 
for the collection of the amounts due for such terracing. For such service 
such member so designated shall receive an annual salary to be paid out of 
the moneys received from terracing done or performed. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240; 1951 (47) 506. 

270 



§63-426 Soil Conservation and Improvement §63-430 

§ 63-426. Deposit prerequisite to work. 

The board, before entering into a contract with any farmer to do terracing 
upon his lands, shall first make an estimate of the cost of such terracing to the 
farmer and shall, at the time of entering into such contract and before any 
of the work is done, require a sufficient deposit to be placed with the board 
to pay the entire cost of the terracing contemplated to be done upon the farm. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240. 

§ 63-427. Record of hours worked by equipment. 

The foreman in charge of the terracing equipment of the board shall keep 
a record of the number of hours such equipment was used on each and every 
farm on which terracing may be done under the provisions of this article and 
file a written report thereof at the end of each week in the office of the farm 
demonstration agent of Saluda County. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240. 

§ 63-428. Monthly accounting to county treasurer. 

The treasurer of the board shall, at the end of each calendar month, report 
to the treasurer of Saluda County in writing the number of hours the equipment 
of the board has been used during the month and shall pay over to the county 
treasurer the sum of one dollar per hour for the time such equipment was used 
in such month and such sum shall be held by the county treasurer in a separate 
account to be applied by him to the payment of the notes and interest hereto- 
fore authorized to be issued to pay for the machinery and equipment of the 
board. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240. 

§ 63-429. Direct supervision of machinery by county chairman and compensa- 
tion therefor. 

The actual operation of the terracing machinery shall be under the immediate 
supervision of the chairman of the governing body of the county who may 
employ and discharge the operators of this machinery as will be to the best 
interest of the Saluda County soil conservation association. The operation 
of this machinery will be directed by the chairman from the county home. 
The salary of the chairman for his services in this capacity will be determined 
by the Saluda County soil conservation association or the terracing com- 
mittee or both and will be paid from the funds of the Saluda County soil con- 
servation association board. 

1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240; 1942 (42) 1480. 

§ 63-430. Work of terracing crew and ultimate supervision of machinery. 

The terracing crew shall work out from the count}' home each day under 
the supervision of the terracing committee of the county soil conservation 
association and the supervision of the operation, maintenance, management 
and control of the machinery and equipment owned by the Saluda County 
soil conservation association shall be vested at all times in the terracing cora- 

271 



§ 63-441 Code of Laws of South Carolina § 63-445 

mittee of the soil conservation association exercised, as to operation, through 
the chairman of the governing body of the county as provided in § 63-429. 
1942 Code § 5806-134; 1937 (40) 195; 1941 (42) 240; 1942 (42) 1480. 

Article 17. 
Saluda County Pasturage Commission. 

§ 63-441. Establishment, membership and term. 

The Saluda County Pasturage Commission is established to consist of seven 
citizens of Saluda County. They shall hold their office for a period of one 
year from April 9th of each year and shall be eligible for reappointment upon 
the commission. They shall be named by the soil conservation association 
of Saluda County and the parties named or elected shall be certified to the 
county treasurer at the time of their selection. 

1948 (45) 2088. 

§ 63-442. Development of unimproved lands ; charges. 

The commission shall be charged with the development of the unimproved 
lands of Saluda County and to this end may acquire the funds available to 
purchase machinery and equipment for use in the clearing and improvement 
of such lands. Such work shall be performed for individual landowners of 
Saluda County who shall be charged therefor at such rate as the commission 
may determine. In fixing the charges against the landowners the commission 
shall include at least the sum of two dollars per hour for the use of the ma- 
chine owned by the commission which sum of two dollars per hour shall be 
paid quarterly to the county treasurer in reimbursement of the amount ap- 
propriated for the purchase of such machine and shall defray all other costs 
of the operation of the machine. 

1948 (45) 2088. 

§ 63-443. County not to be obligated. 

The commission shall have no authority whatever to obligate Saluda County 
or to create any indebtedness against the county. 

1948 (45) 2088. 

§ 63-444. Rules and regulations. 

The commission may make such rules and regulations as may be necessary 
for the work proposed to be done. 
1 1948 (45) 2088. 

§ 63-445. Annual report. 

The commission shall make an annual report to the governing body of the 
county and to the county legislative delegation, which shall disclose all re- 
ceipts and disbursements and shall be filed with the governing body of the 
county and the county legislative delegation on or before the 31st day of 
December of each year. 

1948 (45) 2088. 

272 



§63-451 Soil Conservation and Improvement §63-461 

Article 18. 
Union County. 

§ 63-451. Terracing of certain lands. 

Union County may enter into contract through the medium of the soil 
conservation association with the landowners of the county to assist such 
landowners in financing the terracing of their lands. 

1942 Code §5806-136; 1937 (40) 585. 

§ 63-452. Application and estimate of cost. 

A landowner, to obtain this assistance, shall make written application to 
the soil conservation association for the terracing of his lands. The soil 
conservation association shall order the engineer in charge to make an esti- 
mate of the cost of terracing the applicant's land, which estimate shall be 
submitted to the soil conservation association for approval or disapproval. 

1942 Code § 5806-136; 1937 (40) 585. 

§ 63-453. Deposit and terms of security for payment of balance. 

If the application is approved, the landowner shall deposit twenty-five per 
cent of such estimate with his application to the county treasurer and the 
balance shall be paid in three equal annual installments, such deferred pay- 
ments to be secured by a levy assessed against the whole tract of land whether 
partially or fully terraced, to bear interest at the rate of four per cent per 
annum from the date the work on the applicant's farm is completed, and shall 
be charged by the county auditor and collected by the county treasurer in 
the same manner and at the same time that state and county taxes are col- 
lected. The first deferred payment shall be due and payable the next succeed- 
ing taxable year. 

1942 Code § 5806-136; 1937 (40) 585. 

Article 19. 
Terracing Commission, York County. 

§ 63-461. Appointment, terms and compensation. 

There is created in York County a commission to be known as the terracing 
commission of York County, consisting of five members. Such members 
shall be appointed by a majority of the county legislative delegation and their 
term of office shall be two years commencing on April 20th in each even 
numbered year. Each two years the county legislative delegation, including 
the Senator, shall hold a meeting in the county courthouse and elect the 
members of the commission by a majority vote thereof and in the event of any 
vacancy by death or resignation such vacancy shall be filled by a majority 
vote of the county legislative delegation at a special meeting for that purpose. 
The membership of the commission shall receive by way of compensation 
a per diem for each meeting and five cents per mile for travel. 

1944 (43) 2310; 1951 (47) 506. 

[6 SC Code] — 18 273 



§ 63-462 Code of Laws of South Carolina § 63-467 

§ 63-462. Secretary and meetings. 

The commission shall elect at its first meeting a secretary. The secretary 
shall keep a record of the minutes of all meetings and he shall also act as 
treasurer of the committee. 

The committee shall meet at such times and such places as may be desig- 
nated by the chairman, whose duty it shall be to notify the membership thereof 
by mail not less than two days in advance of the time and place of meeting. 
A majority of the membership shall constitute a quorum for any meeting of 
the committee. 

1944 (43) 2310. 

§ 63-463. Bond of secretary. 

The secretary and treasurer of the commission shall give bond for the faith- 
ful performance of his duties in the sum of ten thousand dollars and the pre- 
miums for such bond shall be paid out of the funds of the commission. 

1944 (43) 2310. 

§ 63-464. Employment of personnel. 

The commission may employ any necessary personnel at salaries to be fixed 
by the commission. 

19-14 (43) 2310. 

§ 63-465. General powers ; contracts and funds received thereunder. 

The commission shall have all necessary powers to do all things to enable 
the farmers and landowners of York County to meet the Federal program for 
terracing and improving farm lands in the county or any program for farms 
which the Federal Government may offer to the farmers with reference to 
terracing lands. All contracts and agreements binding upon the commission 
shall be signed by the chairman and countersigned by the secretary and treas- 
urer. All funds collected under contracts made by the commission shall be 
held by the secretary and treasurer of the board. 

1944 (43) 2310. 

§ 63-466. Commission may rent equipment. 

York County or any of its townships may, if they so desire, rent any of 
their equipment to the commission at such rental as may be agreeable to 
the township or the county and the commission. 

1944 (43) 2310. 

§ 63-467. Contracts to terrace farm lands. 

The commission may enter into contracts and agreements with any land- 
owner or any other person or corporation in York County or with any agency 
of the Federal Government for the terracing of farm lands located in the 
county at such prices and under such terms and conditions as the commission 
may determine. 

1944 (43) 2310. 

274 [6SCCode] 



§63-468 Soil Conservation and Improvement §63-471 

§ 63-468. Disbursements. 

The commission may disburse funds by voucher signed by the chairman and 
countersigned by the secretary and treasurer, subject to any other rules and 
regulations for the proper disbursement of funds that may be adopted by the 
commission. 

1944 (43) 2310. 

§ 63-469. Borrowing. 

The commission may, upon the approval of a majority of the county legis- 
lative delegation, borrow any sum which may be necessary for operating 
expenses and for the purchase of additional equipment from the York County 
sinking fund commission or any financial institution in York County and the 
commission may pledge the full faith and credit and taxing power of the 
county. 

1944 (43) 2310. 

§ 63-470. Repayment of loans through revenue or tax. 

For the repayment of any sum which may be borrowed by the commission 
the commission shall pledge all revenue from terracing contracts. Such 
revenue as it may have in its hands in excess of operating expenses shall be 
applied to the repayment of any money borrowed by the commission. At any 
time that there is any deficiency between the revenue pledged and the amount 
due to be repaid by the commission the county auditor shall levy a tax upon 
all of the taxable property of the county and the county treasurer shall collect 
such tax as all other taxes are collected for the purpose of paying any de- 
ficiency between the revenue which the commission may have and the actual 
amount due to be paid by the commission. 

1944 (43) 2310. 

§ 63-471. Report on finances. 

The commission shall file a copy of its proceedings showing the amount 
of money disbursed and the amount received on or before the fifteenth of 
every third month. 

1944 (43) 2310. 



275 



Title 64. 
Sundays, Holidays and Other Special Days.* 

Chap. 1. Sundays, §§ 64-1 to 64-6. 

2. Blank. 

3. Special Days, §§ 64-101 to 64-105. 

4. Legal Holidays, §§ 64-151 to 64-158. 



CHAPTER I. 

Sundays.** 

Sec Sec. 

64-1. Public sports prohibited on Sunday. 64-5. Employment of children or women in 
64-2. Penalty for working on Sunday. mercantile or manufacturing estab- 

64-3. Requiring machine shop labor on Sun- lishments on Sunday. 

day prohibited. 64-6. Exceptions for chemical plants requir- 
64-4. Employment in textile plants on Sun- ing continuous operation. 

day. 

§ 64-1. Public sports prohibited on Sunday. 

No public sports or pastimes, such as bear-baiting, bull-baiting, football play- 
ing, horse-racing, interludes or common plays, or other games, exercises, 
sports or pastimes, such as hunting, shooting, chasing game or fishing, shall 
be used on Sunday by any person whatsoever. Every person offending in 
any of the premises shall, upon conviction, be guilty of a misdemeanor and 
be subject to a fine not to exceed fifty dollars or imprisonment not to exceed 
thirty days. 

1942 Code § 1733; 1932 Code § 1733; Cr. C. '22 § 715; Cr. C. '12 § 700; Cr. C. '02 § 502; 
G. S. 1633; R. S. 387; 1896 (22) 331. 

This section is constitutional. — This sec- And its enforcement cannot be enjoined, 
tion does not violate either the State or the — This section being constitutional, its en- 
Federal Constitution. Palmetto Golf Club forcement cannot be enjoined under ex- 
v. Robinson, 143 S. C. 347, 141 S. E. 610 ception to rule that equity will not restrain 
(1928). criminal prosecution in absence of pending 



* As to negotiable instrument when maturity falls on Sunday or holiday, see §§ 8-926, 
8-1014. As to county office hours in Berkeley County, see § 14-1058. As to office hours 
of certain officers of Florence County, see § 14-1265. As to county office hours in Jasper 
County, see § 14-2409. As to county office hours in Orangeburg County, see § 14-3065. 

" As to offense of permitting any game or games to be played on Sunday, see § 16-506. 
As to sale of alcoholic beverages between Saturday night and Monday morning, see §§ 4- 
204, 4-205 . As to motion pictures, athletic sports and musical concerts on Sunday, see 
§§5-103, 5-104. As to public dance hall on Sunday, see §5-601. As to operation of 
piccolo, orchestra or music-making machine on Sunday, see §§ 5-616, 5-625, 5-631. As 
to service of process on Sunday, see § 10-471. As to service of criminal process on 
Sunday, see § 17-239. As to retaking escaped prisoner on Sunday, see § 17-260. As to 
operation of railroad on Sunday, see §§ 58-1021 to 58-1024. 

277 



§64-2 



Code of Laws of South Carolina 



§64-2 



equity suit between same parties to try- 
same right in issue. Palmetto Golf Club v. 
Robinson, 143 S. C. 347, 141 S. E. 610 
(1928). 

It does not apply to golf as game or ex- 
ercise. — This section does not prohibit play- 
ing golf on Sunday as a game, exercise, 
sport, or pastime. Palmetto Golf Club v. 
Robinson, 143 S. C. 347, 141 S. E. 610 
(1928). 



Application to corporate officers and 
agents. — While not applicable to corpora- 
tions, it applies to officers and agents there- 
of. Palmetto Golf Club v. Robinson, 143 
S. C. 347, 141 S. E. 610 (1928). 

Stated in Greenville Baseball v. Bearden, 
200 S. C, 363, 20 S. E. (2d) 813 (1942). 



§ 64-2. Penalty for working on Sunday. 

No tradesman, artificer, workman, laborer or other person whatsoever, shall 
do or exercise any worldly labor, business, or work of his ordinary calling 
upon Sunday or any part thereof, work of necessity or charity only excepted, 
and every person of the age of fifteen years or upwards offending in the prem- 
ises shall, for every such offense, forfeit the sum of one dollar. 

1942 Code § 1732; 1932 Code § 1732; Cr. C. "22 § 713; Cr. C. '12 § 698; Cr. C. '02 § 500; 
G. S. 1631; R. S. 385; 1691 (2) 69; 1712 (2) 396. 



This section is constitutional. Xepapas 
v. Richardson, 149 S. C. 52, 146 S. E. 6S6 
(1929). 

It does not violate either the State or the 
Federal Constitution. Palmettto Golf Club 
v. Robinson, 143 S. C. 347, 141 S. E. 610 
(1928). 

This section is not in violation of S. C. 
Const., Art. 1, § 5, or U. S. Const., Amend. 
14, because it does not apply to corpora- 
tions. Xepapas v. Richardson, 149 S. C. 
52, 146 S. E. 686 (1929). 

And equity cannot enjoin its enforcement. 
— Since this section is a valid enactment, 
equity cannot grant injunction restraining 
sheriff and constable from attempting to 
enforce its provisions to prevent sale of 
gasoline and motor oil on Sunday. Charles- 
ton Oil Co. v. Poulnot, 143 S. C. 283, 141 
S. E. 454 (1928). 

This section being constitutional, its en- 
forcement cannot be enjoined under excep- 
tion to rule that equity will not restrain 
criminal prosecution in absence of pending 
equity suit between same parties to try 
same right in issue. Palmetto Golf Club 
v. Robinson, 143 S. C. 347, 141 S. E. 610 
(1928). 

It applies to corporate officers and 
agents. — This section does not apply to cor- 
porations, but it does not apply to officers, 
agents, servants, and employees thereof. 
Palmetto Golf Club v. Robinson, 143 S. C. 
347, 141 S. E. 610 (1928). 

Only one entire offense can occur on same 
day. — Under this section, there can be but 
one entire offense on the same da}', and the 
number of separate acts done does not in- 
crease the number of offenses. State v. 
James, 81 S. C. 197, 62 S. E. 214 (1908). 



Works of necessity or charity are except- 
ed. — Guilt or innocence of any person 
charged with a violation of this section 
depends on facts and circumstances of each 
case, since works of necessity or charity 
are excepted therefrom. Charleston Oil 
Co. v. Poulnot, 143 S. C. 283, 141 S. E. 454 
(1928). 

And telegram may be work of necessity. 
— If this section is held to prohibit an op- 
erator or messenger from delivering ordi- 
nary social and business telegraphic mes- 
sages on Sunday, it would have no appli- 
cation to a message which falls within the 
excepted classes as a work of necessity or 
charity because it relates to sickness and 
approaching death of a relative. Smith v. 
Western Union Tel., 72 S. C. 116, 51 S. E. 
537 (1905). 

But golf as business violates this section. 
— One over fifteen years of age who en- 
gages in game of golf as professional or in- 
structor, or in the work of caddie for com- 
pensation, or owns, keeps, or maintains any 
golf links or course as his business on Sun- 
day violates this section. Palmetto Golf 
Club v. Robinson, 143 S. C. 347, 141 S. E. 
610 (1928). 

As does delivery of ice or cold meat. — 
The continuance on Sunday of ordinary 
sales or deliveries of ice or fresh meat is 
not a "work of necessity" in a town within 
the exception of the Sundav law. State v. 
James, 81 S. C. 197, 62 S. E. 214 (1908). 

Or sale of gasoline. — Sale of gasoline is 
not a work of necessity within the provi- 
sions of this section. Charleston Oil Co. v. 
Poulnot, 143 S. C. 283, 141 S. E. 454 (1928). 

Where the act adopted by the General 
Assembly permitting sale of gasoline and 



278 



§64-3 



Sundays, Holidays and Other Special Days 



§64-4 



motor oils on Sunday was vetoed by the 
Governor, the failure of the General Assem- 
bly to pass the proposed legislation over 
the Governor's veto should be regarded as 
evidence that the General Assembly intend- 
ed that Sunday statutes should remain in 
full force. Charleston Oil Co. v. Poulnot, 
143 S. C. 283, 141 S. E. 454 (1928). 

The burden of showing that sale of gas- 
oline or motor oil is work of necessity or 
charity rests on the seller. Charleston Oil 
Co. v. Poulnot, 143 S. C. 283, 141 S. E. 454 
(192S). 

Sunday publication of legal notice is val- 
id. — Violation of this section does not ren- 
der required publication of a legal notice 



in a newspaper issued on the Sabbath illegal 
and invalid. Eason v. Witcofskey, 29 S. 
C. 239, 7 S. E. 291 (1888). 

Liability of principal for agent's act on 
Sunday. — A principal cannot escape liabil- 
ity for the negligent act of his agent by 
pleading that the act was done on Sunday. 
Rosamond v. Lucas-Kidd Motor Co., 182 
S. C. 331, 189 S. E. 641 (1937). 

For additional related case, see Cain v. 
Daly, 74 S. C. 480, 55 S. E. 110 (1906). 

Quoted in Linfors v. Unity Life Ins. Co., 
189 S. C. 527, 1 S. E. (2d) 781 (1939). 

Cited in Oliveros v. Henderson, 116 S. C. 
77, 106 S. E. 855 (1921); State v. Scithel. 
201 S. C. 1, 21 S. E. (2d) 195 (1942). 



§ 64-3. Requiring machine shop labor on Sunday prohibited. 

In addition to the penalties prescribed against tradesmen, artificers, work- 
men and laborers who shall do or exercise any worldly labor, business or work 
of their ordinary calling upon Sunday, or any part thereof, any person who 
shall order, require or direct any work to be done in any machine shop on 
Sunday, except in cases of emergency, shall be guilty of a misdemeanor and, 
upon conviction, shall be fined in a sum not less than one hundred dollars 
and not more than five hundred dollars for each offense. 

1942 Code § 1735; 1932 Code § 1735; Cr. C. '22 § 716; Cr. C. '12 § 701; Cr. C. '02 § 503; 
1899 (23) 100. 



Corporate officers are indictable under 
§ 64-2. — While corporations cannot be in- 
dicted and punished under § 64—2, their of- 
ficers, agents, and servants who violate the 
statute are subject to prosecution thereun- 
der. Charleston Oil Co. v. Poulnot, 143 S. 
C. 283, 141 S. E. 454 (1928). 

But not corporations. — Since enactment 
of this section was legislative recognition 



that § 64-2 did not contemplate punishment 
of corporations for violation of Sunday 
laws, and since the law as declared in 
§ 64-2 applied only to persons from the age 
of fifteen years and upwards, corporations 
could not be penalized under such section 
for working or selling goods on Sunday. 
Charleston Oil Co. v. Poulnot, 143 S. C. 
283, 141 S. E. 454 (1928). 



§ 64-4. Employment in textile plants on Sunday. 

It shall be unlawful for any person owning, controlling or operating any 
textile manufacturing, finishing, dyeing, printing or processing plant to re- 
quest, require or permit any regular employee to do, exercise or perform any 
of the usual or ordinary worldly labor or work in, of, about or connected with 
such employee's regular occupation or calling or any part thereof in or about 
such textile manufacturing, finishing, dyeing, printing or processing plant on 
Sunday, work of absolute necessity or emergency alone excepted and then 
only upon condition that such employee be paid on the basis of one and one-half 
the amount of the usual average day wage or salary earned by such employee 
during other days of the week. But this section shall not be construed to 
apply to watchmen, firemen and other maintenance and custodial employees. 
The term "regular employee" as used in this section shall be construed to mean 
any person who usually or ordinarily works as much as twenty hours per week 
or more in any such textile manufacturing, finishing, dyeing, printing or proc- 

279 



§ 64-5 Code of Laws of South Carolina § 64-6 

essing plant, whether employed and paid by the job, by the piece, by the hour 
or on a salary basis. Any person violating any of the provisions of this section 
shall be guilty of a misdemeanor and upon conviction shall be punished by a 
fine of not less than one hundred dollars nor more than one thousand dollars. 
1942 Code § 1735-1; 1937 (40) 528; 1939 (41) 313. 

For discussion of section prior to 1939 sey v. Beaumont Mfg. Co., 194 S. C. 395, 9 
amendment exempting watchmen, see Cook- S. E. (2d) 790 (1940). 

§ 64-5. Employment of children or women in mercantile or manufacturing 
establishments on Sunday. 

It shall be unlawful for any person to employ, require or permit the employ- 
ment of women or children to work or labor in any mercantile establishment 
or manufacturing establishment on Sunday. The term "mercantile establish- 
ment" shall be construed to mean any place where goods or wares are offered 
or exposed for sale, except cafeterias and restaurants. The term "manufac- 
turing establishment" shall be construed to mean any plant or place of busi- 
ness engaged in manufacturing. The Commissioner of Labor and factory in- 
spectors are charged with the enforcement of this section. And the Com- 
missioner and his duly authorized agents or inspectors shall have free access 
to any place where women or children are employed for the purpose of en- 
forcing compliance with the provisions of this section. Any person who 
hinders or obstructs the Commissioner, or any of his duly authorized agents 
or inspectors in the performance of their duties shall be guilty of violating 
this section. Any person violating any of the provisions hereof shall be guilty 
of a misdemeanor and, upon conviction, shall be punished by a fine of not 
less than twenty-five dollars, nor more than one hundred dollars, or imprison- 
ment not to exceed thirty days for each offense. 

1942 Code § 1735-2; 1934 (38) 1454; 1941 (42) 119. 

§ 64-6. Exceptions for chemical plants requiring continuous operation. 

The provisions of §§ 64-2 to 64-5 shall not apply to manufacturing establish- 
ments or employees thereof when such establishments in the nature of their 
business involve chemical manufacturing processes requiring, of necessity, 
for a normal production schedule continuous and uninterrupted operation. 
In such industries a work week in excess of forty hours and a work day in 
excess of eight hours shall not be permissible except when the provisions of 
the Fair Labor Standards Act are complied with. The exemption herein 
provided shall not apply to or affect cotton, woolen or worsted manufac- 
turing, finishing, dyeing, printing or processing plants and such plants and 
industries shall be controlled by § 64-4. 

1950 (46) 2260. 



280 



§ 64-101 Sundays, Holidays and Other Special Days § 64-104 

CHAPTER 2. 
Blank. 



CHAPTER 3. 
Special Days. 

Sec. Sec. 

64-101. Arbor Day. 64-104. Mothers' Day. 

64-102. Frances Willard Day. 64-105. South Carolina Day. 

64-103. General Tulaski's Memorial Day. 

§64-101. Arbor Day. 

The first Friday of December of each year is set apart as Arbor Day and 
as a part of the observance of Arbor Day the officials, teachers, supervisors, 
principals and superintendents of the public schools are directed to observe 
the first Friday in December in each year as South Carolina Arbor Day with 
appropriate ceremonies, including the planting of trees on school property, 
and all civic, patriotic and fraternal organizations are requested to lend their 
assistance in the observance of such day in an appropriate manner. 

1942 Code § 5387; 1940 (41) 1824. 

§ 64-102. Frances Willard Day. 

The fourth Friday in October in each year shall be set apart and designated 
in the public schools as Frances Willard Day and in each public school it 
shall be the duty of such school to prepare and render a suitable program 
on the day to the end that the children of the State may be taught the evils 
of intemperance. 

1942 Code § 5389; 1932 Code § 5433; Civ. C. '22 § 2698; 1918 (30) 791. 

§ 64-103. General Pulaski's Memorial Day. 

The Governor shall issue a proclamation calling upon officials of the gov- 
ernment to display the flag of the United States on all governmental build- 
ings on October 11th of each year and inviting the people of the State to ob- 
serve the day in schools and churches or other suitable places with appro- 
priate ceremonies in commemoration of the death of General Casimir Pulaski. 

1942 Code § 5390; 1932 (,37) 1268. 

§ 64-104. Mothers' Day. 

The Governor is requested to issue annually a proclamation calling upon the 
State officials to display the United States flag and the flag of this State on all 
State and school buildings and the people of the State to display the flag 
at their homes, lodges, churches, places of business and other suitable places 
on the second Sunday in May, known as Mothers' Day, founded by Anna 
Jarvis of Philadelphia, Pennsylvania, as a public expression of love and 

281 



§ 64-105 Code of Laws of South Carolina § 64-151 

reverence for the homes of the State, especially for their mothers and other 
patriotic women therein, and the Governor is requested to urge the celebra- 
tion of Mothers' Day in such proclamation in such a way as will deepen home 
ties and inspire better homes and closer union between the State, its homes 
and their sons and daughters. 

1942 Code § 5704; 1932 Code § 5704; 1923 (33) 240. 

§ 64-105. South Carolina Day. 

The public schools shall observe Calhoun's birthday, the 18th of March 
of each year, as South Carolina Day and on that day the school officers and 
teachers shall conduct such exercises as will conduce to a more general knowl- 
edge and appreciation of the history, resources, and possibilities of this State. 
If such day shall fall on Saturday or Sunday the Friday nearest to March 18th 
shall be so observed and if any school shall not be in session on such date, the 
celebration may be held before the close of the term. The State Superin- 
tendent of Education shall suggest such topics or programs as he may deem 
appropriate for the celebration of South Carolina Day. 

1942 Code § 5388; 1932 Code § 5432; Civ. C. '22 § 2697; Civ. C. '12 § 1810; 1906 (25) 22. 



CHAPTER 4. 

Legal Holidays. 

Sec. Sec. 

64-151. List of legal holidays. 64-155. All first Mondays in month busi- 
64-152. Thursday of fair week a holiday in ness days for certain purposes. 

counties in which fair is held. 64-156. Banks may do business on holidays 
64-153. Certain Mondays declared holidays; except Sundays. 

presentment of bills, notes and 64-157. When paper maturing on Sunday 

checks. or legal holiday collectible. 

64-154. Additional holidays for banks and 64-158. Special holiday provisions for 

cash depositories during emergen- Charleston and Richland Coun- 

cies. ties. 

§64-151. List of legal holidays. 

National Thanksgiving days, all general election days and also the first 

day of January, the nineteenth day of January, the twenty-second day of 

February, the tenth day of May, the third day of June, the fourth day of 

July, the first Monday in September, the eleventh day of November and the 

twenty-fifth and twenty-sixth days of December in each year shall be legal 

holidays. 

1942 Code §7050; 1932 Code §7050; Civ. C. '22 § 571S; Civ. C. '12 §4201; Civ. C. '02 
§ 3094; 1898 (22) 791; 1911 (27) 138; 1917 (30) 3S; 1923 (3i) 168; 1948 (45) 1670. 

Judicial proceedings on a holiday are not Stated in Montague Corp. v. Burton Lum- 

illegal. Mitchell v. Bates, 57 S. C. 44, 35 ber Co., 136 S. C. 40, 134 S. E. 147 (1926). 
S. E. 420 (1900); Hiller v. English, 4 
Strob. (35 S. C. L.) 486. 

282 



§ 64-152 Sundays, Holidays and Other Special Days § 64-157 

§ 64-152. Thursday of fair week a holiday in counties in which fair is held. 

Thursday of fair week in each year shall be a legal holiday in all the counties 
in which the State Agricultural and Mechanical Society holds an annual fair. 
1942 Code § 7051; 1932 Code § 7051; Civ. C. '22 § 5719; Civ. C. '12 § 4202; 1906 (25) 110. 

§ 64-153. Certain Mondays declared holidays; presentment of bills, notes and 
checks. 

Whenever any of the legal holidays mentioned in § 64-151 shall fall upon 
Sunday the Monday next following shall be deemed a public holiday for all 
of the purposes aforesaid. But in such case all bills of exchange, checks and 
promissory notes which would otherwise be presentable for acceptance or 
payment on any such Monday shall be deemed to be presentable for accept- 
ance or payment on the secular or business day next succeeding the holiday. 

1946 (44) 1456. 

§ 64-154. Additional holidays for banks and cash depositories during emer- 
gencies- 

In addition to the holidays enumerated in §§64-151 to 64-153 and 64-158 
the Governor, at the request of the Chairman of the State Board of Bank Con- 
trol and the president of the South Carolina Bankers' Association, may in case 
of an emergency declare any other day or days of the year legal holidays for 
banks and cash depositories. 

1946 (44) 1456. 

§ 64-155. All first Mondays in month business days for certain purposes. 

Notwithstanding the provisions of §§64-151 and 64-153, each first Monday 
in any month shall be a legal day for judicial or sheriff's sales or the trans- 
action of any legal business. 

1942 Code § 7050; 1932 Code § 7054; Civ. C. '22 § 5718; Civ. C. '12 § 4201; Civ. C. '02 
§ 3094; 1898 (22) 791; 1911 (27) 138; 1917 (30) 38; 1923 (33) 168; 1948 (45) 1670. 

§ 64-156. Banks may do business on holidays except Sundays. 

Any business transacted by any bank or cash depository on any day of the 
year other than Sunday shall be legal. 

1946 (44) 1456. 

§ 64-157. When paper maturing on Sunday or legal holiday collectible. 

Any commercial paper or other security which shall mature and become 
payable and collectible on Sunday or on any legal holiday shall be deemed and 
taken and treated as maturing and becoming payable and collectible on the 
next day thereafter if such next day shall not be Sunday or a legal holiday, 
in which latter event it shall be deemed, taken and treated as due, maturing 
and collectible on the first day thereafter which is not a Sunday or a legal 
holiday. 

1942 Code § 6750: 1932 Code § 6750; Civ. C. '22 § 3650; Civ. C. '12 § 2534; Civ. C. '02 
§ 1676; R. S. 1404; 1S91 (20) 1052. 

2S3 



§ 64-158 Code of Laws of South Carolina § 64-158 

Insurance premium due on Sunday. — For day and citing this section in support of 
case holding that an insurance premium due such holding, see Linfors v. Unity Life Ins. 
on Sunday could be paid on the following Co., 189 S. C. 527, 1 S. E. (2d) 781 (1939). 

§64-158. Special holiday provisions for Charleston and Richland Counties. 

In Charleston and Richland Counties the holidays mentioned in § 64-151, 
any other day which may at any time be made a public holiday by law and 
every Saturday from twelve noon until twelve midnight, which is hereby ap- 
pointed a half holiday, shall for all purposes whatsoever, as regards the pre- 
senting for payment or acceptance and the protesting and giving notice of 
the dishonor of bills of exchange, bank checks and promissory notes, be treated 
and considered as the first day of the week, commonly called Sunday, and as 
public holidays or half holidays and all such bills, checks and notes, otherwise 
presentable for acceptance or payment on such public holidays, shall be pre- 
sentable for acceptance or payment on the secular or business day next suc- 
ceeding such holiday. But in the case of a half holiday, such bills, checks and 
notes shall be presentable for acceptance or payment at or before twelve 
o'clock noon of that day. 

But for the purpose of protesting or otherwise holding liable any party to 
any bill of exchange, check or promissory note which shall not have been 
paid before twelve o'clock at noon on any Saturday a demand of acceptance 
or payment thereof may be made and notice of protest or dishonor thereof 
may be given after twelve o'clock at noon on Saturday or on the next suc- 
ceeding secular or business day. When any person shall receive for collection 
any check, bill of exchange or promissory note, due and presentable for ac- 
ceptance or payment on any Saturday, such person shall not be deemed guilty 
of any neglect or omission of duty nor incur any liability in not presenting for 
payment or acceptance or collecting such check, bill of exchange or promissory 
note on that day. 

In construing this section every Saturday, unless a whole holiday as afore- 
said, shall until twelve o'clock noon be deemed a secular or business day and 
nothing herein contained shall render illegal any business which any person 
shall see fit to transact on any Saturday after twelve o'clock at noon. 

1942 Code § 7052; 1932 Code § 7052; Civ. C. '22 § 5720; Civ. C '12 § 3095; 1892 (21) 188; 
1898 (22) 790; 1903 (24) 107. 

Quoted in Montague Corp. v. Burton 
Lumber Co., 136 S. C. 40, 134 S. E. 147 
(1926). 



284 



Title 65. 
Taxation.* 

Chap. 1. General Provisions, §§ 65-1 to 65-7. 

2. South Carolina Tax Commission, §§ 65-51 to 65-72. 

3. Tax Board of Review, §§ 65-101 to 65-111. 

4. Poll Tax, §§ 65-151 to 65-160. 

5. Income Tax Act of 1926, §§ 65-201 to 65-367. 

6. Income Tax on Banks, §§ 65-401 to 65-406. 

7. Inheritance Tax, §§ 65-451 to 65-529. 

8. Estate Tax, §§65-551 to 65-553. 

9. License Fees of Corporations, §§ 65-601 to 65-616. 

10. Certain Stamp and Certain Business License Taxes, §§ 65-651 to 

65-880. 

11. Other Business License Taxes, §§ 65-901 to 65-993. 

12. Gasoline Tax, §§ 65-1051 to 65-1142. 

13. Tax on "Fuel," §§ 65-1201 to 65-1220. 

14. Alcoholic Beverages, §§ 65-1251 to 65-1307. 

15. Retail License, Sales and Use Taxes, §§ 65-1351 to 65-1480. 

16. The Assessment of Property Taxes, §§ 65-1501 to 65-1927. 

17. County Treasurers and the Collection of Taxes, §§65-1951 to 65- 

2061. 

18. Tax Collectors, §§ 65-2101 to 65-2635. 

19. Erroneous Assessments and Payments, §§ 65-2651 to 65-2685. 

20. Enforced Collection of Taxes, §§ 65-2701 to 65-2868. 

21. Forfeited Lands, §§ 65-2901 to 65-3262. 

22. Suits to Clear Tax Titles, §§ 65-3301 to 65-3306. 

23. Local Provisions, §§ 65-3351 to 65-3654. 

* As to taxation of property in proportion to its value, see S. C. Const., Art. 1, § 6; Art. 
3, § 29. As to constitutional prohibition against tax without consent, see S. C. 
Const., Art. 1, § 7. As to bills for raising revenue, see S. C. Const., Art. 3, § 15. As to 
constitutional provision for assessment for taxation, see S. C. Const., Art. 3, 
§29. As to constitutional provisions concerning finance and taxation, see S. C. Const., 
Art. 10, §§ 1 to 20. As to jurisdiction of State and United States generally, see Title 39. 
As to school taxes generally, see §§21-911 to 21-936. As to municipal taxation generally, 
see §§ 47-821 to 47-823. As to license fees in cities over forty thousand, see § 47-407. As 
to dams, drains and sanitary and drainage commissions and districts generally, see Title 
18. As to fees of county auditors, see §§ 27-503, 27-504. As to coastal fisheries' licenses 
and taxes, see §§ 28-931 to 28-961. As to licenses and fees for protection of fish, game 
and wildlife generally, see Title 28. As to county road taxes, see §§ 33-951 to 33-1296. As 
to special provisions for particular counties, see §§ 33-140.1 to 33-1925. As to disburse- 
ments by the Public Service Authority in lieu of taxes, see § 59-55. As to official receipts 
for money collected, see § 1-51.1. 



2S5 



§65-1 



Code of Laws of South Carolina 



§65-3 



Sec. 
65-1. 
65-2. 



CHAPTER 1. 
General Provisions. 



Definition of Commission. 
Comptroller General may extend 
time for assessment and collection 
of taxes. 
65-2.1. Comptroller General to visit offices 
and examine books, etc., of auditors 
and treasurers annually. 
65-3. Contracts in evasion of tax laws 
against public policy. 



Sec. 
65-4. 

65-5. 

65-6. 

65-7. 



Regulations exempting from tax 
articles for shipment out of State. 

Proration of license fees for persons 
entering armed services. 

Illegally holding certain offices or 
failing to turn over papers or set- 
tle accounts. 

Certain amended or repealed acts re- 
main in force for collection of taxes 
accrued thereunder. 



§ 65-1. Definition of Commission. 

As used in this Title the word 
Tax Commission. 



'Commission" means the South Carolina 



§ 65-2. Comptroller General may extend time for assessment and collection of 

taxes. 

The Comptroller General, with the approval of the Governor, may extend 

the time for the performance of the duties imposed upon the county officers 

for the assessment and collection of taxes and, when such assessment and 

collection of taxes are necessarily delayed, the Comptroller General may 

postpone the time within which the penalties imposed by law shall attach. 

1942 Code §3155: 1932 Code §3155; Civ. C. '22 §851; Civ. C. '12 §767; Civ. C. '02 
§ 693; G. S. 552; R. S. 610; 1876 (16) 561. 



Cross reference. — As to Comptroller Gen- 
eral, see §§ 1-811 to 1-830. 

With approval of Governor. — Time of tax 
sale may be postponed by Comptroller Gen- 
eral. Shell v. Duncan, 31 S. C. 547, 10 S. E. 
330 (1889). 



Presumption that extension made with 
approval of Governor. — Shell v. Duncan, 31 
S. C. 547, 10 S. E. 330 (1889). 

Comptroller General may postpone pen- 
alties without Governor's approval. — Shell 
v. Duncan, 31 S. C. 547, 10 S. E. 330 (1889). 



§ 65-2.1. Comptroller General to visit offices and examine books, etc., of audi- 
tors and treasurers annually. 
The Comptroller General shall, as often as once a year, either in person or 
by some authorized agent of his office examine all the books, papers and ac- 
counts pertaining to the offices of the auditors and the treasurers of the 
respective counties, with a view to protecting the interests of the State and 
rendering such officers such aid or instruction as, in the discharge of their 
several duties, they may need to make their service the more efficient. 

1942 Code § 2732; 1932 Code § 2732; Civ. C. '22 § 464; Civ. C. '12 § 412; Civ. C. *02 § 371; 
G. S. 224; R. S. 305; 1881 (17) 1008. 



§ 65-3. Contracts in evasion of tax laws against public policy. 

All contracts that are entered into with intent to evade payment of taxes 
or in fraud of the tax laws of this State are against public policy. No court 
in this State shall lend its aid in the enforcement of such a contract. The 

286 



§ 65-4 Taxation § 65-6 

courts of this State shall not lend their aid to enforce any contract entered 
into as a substitute for or having as its consideration a previous contract of 
the nature or class of contracts in this section declared to be against public 
policy. 

1942 Code §2835; 1932 Code §2864; Civ. C. '22 §530; Civ. C. '12 §479; 1902 {22) 970. 

Cited in Byrd v. Lawrimore, 212 S. C. 281, 
47 S. E. (2d) 728 (1948). 

§ 65-4. Regulations exempting from tax articles for shipment out of State. 

The Commission may promulgate rules and regulations permitting bottlers 
of soft drinks, wholesale dealers in tobacco products and wholesale dealers in 
beers, ales, porter and all other similar malt or fermented beverages declared 
to be nonalcoholic and nonintoxicating to store such articles as are intended 
to be sold and shipped to points without the State in separate compartments 
of their places of business without affixing the revenue stamps or crowns 
required by law. Any bottler of soft drinks, wholesale dealer in tobacco 
products or wholesale dealer in beers, ales, porter and all other similar malt or 
fermented beverages declared to be nonalcoholic and nonintoxicating violating 
the rules and regulations of the Commission permitting the storage of these 
articles without affixing the required stamps or crowns shall be liable for 
the penalties prescribed in chapter 10 of this Title. 

1942 Code §2554; 1937 (40) 408. 

§ 65-5. Proration of license fees for persons entering armed services. 

Every person who has paid a license fee for doing business in this State 
or any city, town, county or other political subdivision of the State and who, 
because of entering the armed services of our country, is forced to close his 
business before the full time for which such license was paid shall be re- 
funded the portion of such license fee for the time it was not used. The 
State, city, town, county or other political subdivision so refunding, prorata, 
any of such license fees may require due proof that the refund is due under 
this section. No refund shall be made under the provisions of this section 
when the original cost of such license was less than the sum of fifteen dollars. 

1949 (46) 564. 

§ 65-6. Illegally holding certain offices or failing to turn over papers or settle 
accounts. 
If any: 

(1) Person shall, contrary to the statutes of this State regulating the ap- 
pointment of the county auditor and county treasurer, (a) accept, hold or 
exercise or attempt to hold or exercise the office of county auditor or treasurer 
or (b) fail, when application is made to him by his successor, to turn over all 
books, papers and property of all kinds whatsoever pertaining to either 
such offices; 

(2) County treasurer, county auditor or member of any county board of 
equalization shall neglect, refuse or evade the performance of the duties im- 
posed upon him by law regulating the assessment and collection of taxes; 

287 



§ 65-7 Code of Laws of South Carolina § 65-7 

(3) County auditor shall neglect or refuse to comply with the require- 
ments of the law in the making up of his duplicate or shall fail to file with 
the Comptroller General the abstracts, vouchers and settlement sheets within 
the time required by law; or 

(4) County treasurer, after being notified of his removal or suspension 
from office, shall fail to settle with the county auditor and the Comptroller 
General and pay over all State and county moneys in his hands to the officers 
entitled by law to receive the same, within ten days after being so notified ; 

He shall be guilty of a misdemeanor and, upon trial and conviction thereof, 

shall be punished therefor by a fine not exceeding five thousand dollars or 

by imprisonment not exceeding five years or both such punishments, in the 

discretion of the court. 

1942 Code § 1562; 1932 Code § 1S62; Cr. C. '22 § 510; Cr. C. '12 § 579; Cr. C. '02 § 422; 
G. S. 223; R. S. 335; 1881 (17) 1008. 

§ 65-7. Certain amended or repealed acts remain in force for collection of 
taxes accrued thertunder. 

All Code sections, acts or sections of acts superseded or amended by §§ 105, 
106, 108, 109, 110, 111 and 112 of Act No. 754 of the Acts and Joint Resolutions 
of 1942 (Acts 1942, p. 1765), all Code sections, acts or sections of acts amended 
or superseded by §§ 109, 110, 111, 112, 113 and 114 of Act No. 211 of the Acts 
and Joint Resolutions of 1943 (Acts 1943, p. 327), all Code sections, acts 
or sections of acts superseded or amended by §§ 109, 110, 111, 112, 113 and 
114 of Act No. 518 of the Acts and Joint Resolutions of 1944 (Acts 1944, 
p. 1431), all Code sections, acts or sections of acts superseded or amended by 
§§ 112, 113, 114, 115, 116 and 117 of Act No. 223 of the Acts and Joint Resolu- 
tions of 1945 (Acts 1945, p. 379), all Code sections, acts or sections of acts 
superseded or amended by §§ 109, 110, 111, 112, 113 and 114 of Act No. 601 
of the Acts and Joint Resolutions of 1946 (Acts 1946, p. 1581), Act No. 538 
of the Acts and Joint Resolutions of 1946 (Acts 1946, p. 1466), the section re- 
ferred to in paragraph (b-1) of § 2440 of the Code of Laws of 1942, the Income 
Tax Act of 1922 and amendments thereto referred to in § 2478 of said Code, 
Act No. 11 of the Acts and Joint Resolutions of 1923, Act No. 197 of the 
Acts and Joint Resolutions of 1925, Act No. 475 of the Acts and Joint Resolu- 
tions of 1926, Act No. 73 of the Acts and Joint Resolutions of 1927, and all 
amendments thereto which were superseded by §§ 2521 to 2553 of the Code 
of Laws of 1942 shall remain in force for the collection of all licenses, taxes and 
penalties due thereunder. 

1942 Code §§2440, 2478, 2504, 2549; 1932 Code §§2440, 2478, 2504, 2549; 1924 (33) 902; 
1927 (35) 1; 1928 (35) 1089; 1930 (36) 1339, 1393; 1942 (42) 1765; 1943 (43) 327; 1944 
(43) 1431; 1945 (44) 379; 1946 (44) 1466. 



288 



§ 65-51 Taxation § 65-54 

CHAPTER 2. 

South Carolina Tax Commission.* 

Sec. Sec. 

65-51. Created. 65-65. Returns of banks, insurance com- 

65-52. Appointment and terms. panies and other corporations. 

65-53. Qualifications of members. 65-66. Returns of public utilities and 

65-54. Vacancies and removals. banks in Sumter County. 

65-55. Oath. 65-67. Equalization. 

65-56. Compensation of members. 65-68. Compromise of cases of confiscation 

65-57. Election of chairman. or seizure. 

65-58. Chairman to devote full time to 65-69. Sheriffs and tax collectors to serve 

work; not to engage in politics, executions issued by Commission. 

etc. 65-70. Failure of sheriff to collect execu- 

65-59. Secretary, stenographer and other tions or report violations to Com- 

employees; minutes. mission. 

65-60. Traveling expenses of employees. 65-71. Members may .nake investigations 

65-61. Office, furniture, supplies, etc. in counties. 

65 62. ^^eetings; quorum. 65-72. Witnesses before Commission; 

65-63. Rules. oaths, attendance, paying, etc 
05-64. Powers of Commission. 

§65-51. Created. 

In order to effectively carry into execution the equitable assessment of 
property for taxation, there is created a commission composed of five members 
to be known as the South Carolina Tax Commission. 

1942 Code §2419; 1932 Code §2419; Civ. C. '22 §358; 1915 (29) 125; 1945 (44) 337. 

Cited in Oates v. Fountain, 113 S. C. 372, 
101 S. E. 830 (1920). 

§ 65-52. Appointment and terms. 

The members of the Commission shall be appointed by the Governor, with 
the advice and consent of the Senate. Of the original members, three were 
appointed for terms ending on February 1st in successive even-numbered 
years and two for terms of six years ending on May 15 1951 and their suc- 
cessors have been and shall hereafter be appointed for terms of six years 
and until their successors shall have been appointed and shall qualify. 

1942 Code §2420; 1932 Code §2420; Civ. C. '22 §359; 1915 (29) 125; 1945 (44) 337. 

§ 65-53. Qualifications of members. 

The persons appointed as members of the Commission shall be such as are 
known to possess knowledge of the subject of taxation and skill in matters 
pertaining thereto. 

1942 Code §2421; 1932 Code §2421; Civ. C. '22 §360; 1915 (29) 125. 

§ 65-54. Vacancies and removals. 

Should a vacancy on the Commission occur when the General Assembly 
is not in session it shall be filled by the Governor's appointment for the 
unexpired term, subject to confirmation by the Senate at the next session 



* As to report of certain public utilities to Tax Commission, see § 58-12. 
[6 SC Code] — 19 289 



§ 65-55 Code of Laws of South Carolina § 65-59 

of the General Assembly. The commissioners, or any of them, may be re- 
moved by the Governor for cause shown, with the advice and consent of the 
Senate. And if cause for such removal shall arise when the Senate is not in 
session the Governor may suspend one or more of the commissioners and 
shall fill the vacancies thus created until the General Assembly shall next 
convene. 

1942 Code §2420; 1932 Code §2420; Civ. C. '22 §359; 1915 (29) 125. 

§65-55. Oath. 

Each commissioner within thirty days after notice of his appointment, and 
before entering upon the discharge of the duties of his office, shall take, sub- 
scribe and file with the Secretary of State the oath of office prescribed by 
the Constitution of the State. 

1942 Code §2422; 1932 Code §2422; Civ. C. '22 §361; 1915 (29) 125; 1916 (29) 959. 

§ 65-56. Compensation of members. 

The chairman of the Commission shall receive an annual salary payable 

in the same manner that salaries of other State officers are paid. The other 

commissioners shall receive a per diem and their actual traveling and hotel 

expenses while engaged in the work of the Commission. 

1942 Code §2422; 1932 Code §2422; Civ. C. '22 §361; 1915 (29) 125; 1916 (29) 959; 
1951 (47) 506. 

§ 65-57. Election of chairman. 

The commissioners duly qualified shall elect one of their number as chair- 
man. 

1942 Code §2423; 1932 Code §2423; Civ. C. '22 §361; 1915 (29) 125; 1916 (29) 959. 

§ 65-58. Chairman to devote full time to work ; not to engage in politics, etc. 

The chairman of the Commission shall devote his entire time to the duties 
of the office and shall (a) not hold any other position of trust or profit, (b) 
engage in any occupation or business interfering with or inconsistent with 
his duty, (c) serve on or under any committee of a political party or (d) con- 
tribute, directly or indirectly, money or other thing of value in support of any 
candidate for office or to any political organization. 

1942 Code §2421; 1932 Code §2421; Civ. C. '22 §360; 1915 (29) 125. 

§65-59. Secretary, stenographer and other employees; minutes. 

The Commission may appoint a secretary and a stenographer and may em- 
ploy such other persons as experts and assistants as may by it be deemed 
necessary to perform the duties that may be required of the Commission and 
it may fix the compensation of such employees. The secretary shall keep 
full and correct minutes of all hearings, transactions and proceedings of the 
Commission and shall perform such other duties as may be required by the 
Commission. 

1942 Code §2424; 1932 Code §2424; Civ. C. '22 §363; 1915 (29) 125. 

290 [6SCCode] 



§ 65-60 Taxation § 65-64 

§ 65-60. Traveling expenses of employees. 

The Commission's secretary and such experts and assistants as may be 
employed by the Commission shall be entitled to receive from the State their 
actual necessary expenses while traveling on the business of the Commission, 
such expenses to be sworn to by the person who incurred them and approved 
by the chairman of the Commission or a majority of the members of the 
Commission. 

1942 Code §2425; 1932 Code §2425; Civ. C. '22 §364; 1915 (29) 125. 

§ 65-61. Office, furniture, supplies, etc. 

The Commission shall keep its office at the Capitol and shall be provided 
with suitable rooms, necessary office furniture, supplies, stationery, books, 
periodicals and maps and all necessary expenses shall be audited and paid 
as other State expenses are audited and paid. 

1942 Code §2425; 1932 Code §2425; Civ. C. '22 §364; 1915 (29) 125. 

§65-62. Meetings; quorum. 

The Commission shall hold frequent sessions and as often as the chairman 
or the other members desire, necessary to the transaction of its business. 
Such meetings may be called on twenty-four hours' notice. The Commission 
may hold sessions, transact business or conduct investigations at any place 
other than the Capitol in the performance of its duties. A majority of the 
commissioners shall constitute a quorum for the transaction of the business 
and the performance of the duties of the Commission. 

1942 Code §2423; 1932 Code §2423; Civ. C. '22 §362; 1915 (29) 125. 

§65-63. Rules. 

The Commission may make all needed rules, not inconsistent with law, for 
the orderly and methodical performance of its duties and for conducting 
hearings, appeals and other proceedings before it. 

1942 Code §2424; 1932 Code §2424; Civ. C. '22 §363; 1915 (29) 125. 

§ 65-64. Powers of Commission. 

The Commission shall have and exercise all the powers conferred by law 
upon the former State Board of Equalization and upon the former State 
Board of Assessors prior to February 20 1915 and : 

(1) Shall exercise general supervision over the administration of the assess- 
ment and tax laws of the State, over all boards of assessors and equalization 
and over all other assessing officers in the performance of their duties to the 
end that all assessments of property be made relatively just and equal in 
compliance with the laws of this State; 

(2) Shall prepare suitable forms for the listing of property each year, ar- 
range and classify the items of all property in groups and classes and from 
time to time change and separate or consolidate the same as it may deem ad- 
visable for securing more accurate information concerning, and the more 
perfect listing and valuation of, all property ; 

291 



§ 65-64 Code of Laws of South Carolina § 65-64 

(3) Shall (a) confer with, advise and direct assessors and boards of equaliza- 
tion as to their duties under the laws of the State and to that end call 
meetings of all assessors in each county, to be held at the county seat of such 
county or elsewhere most convenient, or at the Capitol, for the purpose of 
necessary instruction from the Commission as to the law governing the as- 
sessment and taxation of all classes of property and (b) formulate and pre- 
scribe rules to govern such assessors and boards of equalization in the dis- 
charge of their duties which shall be obeyed and carried out by such assessors 
and boards of equalization ; 

(4) Shall (a) direct proceedings, actions and prosecutions to be instituted 
to enforce the laws relating to penalties, liabilities and punishment of public 
officers and officers and agents of corporations for failure or neglect to comply 
with the provisions of the laws of this State governing the assessment and 
taxation of property and such rules of the Commission and (b) cause com- 
plaints to be made against assessors, boards of equalization or other assessing 
and taxing officers to the proper authority for their removal from office for 
official misconduct or neglect of duty; 

(5) Shall require the Attorney General or circuit solicitor to assist in the 
commencement and prosecutions of actions and proceedings for penalties, 
forfeitures, removals and punishment for violation of the laws of this State 
in respect to the assessment and taxation of property in the respective dis- 
tricts of such solicitors; 

(6) Shall require town, city, county and other public officers to report in- 
formation as to the assessment of property, collection of taxes, receipts from 
licenses and other sources and such other information as may be needful 
in the work of the Commission in such form and upon such blanks as the 
Commission may prescribe; 

(7) Shall require individuals, partnerships, companies, associations and 
corporations to furnish information concerning their capital, bonded or other 
debts, current assets and liabilities, value of property, earnings, operating 
and other expenses, taxes and other facts which may be needful for the Com- 
mission to ascertain the value and relative tax burden borne by all kinds 
of property; 

(8) May summon witnesses to appear and give testimony and to produce 
records, books, papers and documents relating to any matters which the Com- 
mission shall have authority to investigate or determine; 

(9) May cause the deposition of witnesses residing within or without the 
State or absent therefrom to be taken upon notice to the interested party, 
if any, in like manner that depositions of witnesses are taken in civil actions 
pending in the circuit court in any matter which the Commission shall have 
authority to investigate or determine; 

(10) Shall carefully examine into all cases in which evasion or violation of 
the laws of the State relating to the assessment and taxation of property is 
complained of or discovered and into all cases in which property subject to 
taxation has not been assessed or has been fraudulently or for any reason 
improperly or unequally assessed or the laws in any manner evaded or vio- 

292 



§ 65-64 Taxation § 65-64 

lated and shall cause to be instituted such proceedings as will remedy im- 
proper or negligent administration of the taxing of the property of the State; 

(11) Shall formulate and recommend such legislation as may be deemed 
expedient to prevent evasions of assessments and taxing laws and to secure 
just taxation and improvements in the system of taxation; 

(12) Shall consult and confer with the Governor upon the subject of taxa- 
tion, the administration of the laws in relation thereto and the progress of the 
work of the Commission, and shall furnish the Governor from time to time 
such reports, assistance and information as he may require; 

(13) Shall transmit to the Governor and to each member elected at the 
last preceding election to the General Assembly, thirty days before the meet- 
ing of the General Assembly, a report of the Commission showing all taxable 
property in the State and the value of it in tabulated forms, with such other 
information as may be advisable and with recommendations for improvement 
in the system of taxation, together with such measures as may be formulated 
for the consideration of the General Assembly ; 

(14) Shall require county auditors to place upon the assessment rolls omit- 
ted property which may be discovered to have for any reason, in whole or in 
part, escaped assessment and taxation in the current or previous years ; 

(15) Shall order reassessment of real and personal property, or any class 
or classes of either, in any assessment district when, in the judgment of the 
Commission, such reassessment is advisable or necessary to the end that all 
classes of property in such assessment district shall be assessed in compliance 
with the law and for that purpose may require the assessors making the 
original assessment to make such reassessment or, if the Commission deem 
it advisable, it may appoint a special county assessor and deputy assessors 
under him to reassess all or any real or personal property, or any class or 
classes of either, in any assessment district, whether or not the same has 
been equalized by any board, the county board of equalization or the Com- 
mission; 

(16) Shall annually make such levy upon the assessed value of property 
subject to taxation as may be necessary to raise the annual appropriations 
made by the General Assembly; 

(17) Shall assess and equalize taxable values upon the property and fran- 
chises of street railway companies, electric railways, water, heat, light and 
power companies and private car lines and such companies and private car 
lines shall make the returns to the Commission in like time and, so far as 
may be practicable, in like manner and form as railroads and other corpora- 
tions make their returns; 

(18) Shall ascertain, compile, record and report the statistics relative to 
the natural resources of the State, including school and public land and waters, 
for the purpose of conservation, use and operation and the collection of such 
royalties therefrom for State revenue purposes as may be provided for by 
law ; and 

(19) Shall exercise and perform such other powers and duties as may be 
granted to or imposed upon it by law. 

293 



§ 65-65 Code of Laws of South Carolina § 65-67 

1942 Code §§2426, 2430; 1932 Code §§2426, 2430; Civ. €. '22 §§365, 367; 1915 (29) 125; 
1916 (29) 959. 

County tax officials are subordinate to directions in tax matters within its author- 
the State Tax Commission and are required ity. Murph v. Query, 209 S. C. 354, 40 S. E. 
to comply with its orders and follow its (2d) 245 (1946). 

§ 65-65. Returns of banks, insurance companies and other corporations. 

The returns of all banks, banking corporations, insurance and trust com- 
panies and other corporations of their property and taxable stocks of stock- 
holders therein shall be made to the respective county auditors and assessed 
and equalized by the county boards as provided by law. When so assessed 
and equalized by the county boards such returns shall forthwith be trans- 
mitted to the Commission and the Commission shall review, reassess and 
equalize them in like manner and mode as the State Board of Equalization 
formerly reviewed, reassessed and equalized the returns and assessments of 
textile, cotton seed oil and fertilizer companies. 

1942 Code §2426; 1932 Code §2426; Civ. C. '22 §365; 1915 (29) 125; 1916 (29) 959; 
1950 (46) 2015. 

Cross reference. — As to procedure for ob- tion, and the assessment made upon such 

taining refund of illegally collected taxes, return by the Commission is not questioned 

and the necessity for making such pay- in any way, and the assessment is duly en- 

ments under protest, see §§ 65-2661 to 65- tered on the tax books by the county audi- 

2663. tor, then payment of the taxes under such 

Assessment by Commission presumed circumstances is deemed voluntary and can- 
correct where taxes voluntarily paid. — not thereafter be recovered. Columbia v. 
Where a bank makes its return to the Tax Peurifoy, 148 S. C. 349, 146 S. E. 93 (1928). 
Commission in accordance with this sec- 

§ 65-66. Returns of public utilities and banks in Sumter County. 

In Sumter County the county auditor shall assess the property of all persons, 

including stocks of merchandise, equipment, machinery and all other assets 

of every nature thereof, except that such auditor shall not assess the property 

of any public utility or bank in said county, but such property of such public 

utility or bank shall be assessed by the Commission. All returns of such 

persons required by this section to be assessed by the county auditor for 

Sumter County, required to be filed with the Commission, shall be annually 

transmitted to the auditor for Sumter County by the Commission and the 

Commission shall assist the auditor when requested so to do in making such 

assessment. 

1942 Code §2426; 1932 Code §2426; Civ. C. '22 §365; 1915 (29) 125; 1916 (29) 959.; 
1950 (46) 2015. 

§ 65-67. Equalization. 

The Commission may equalize the assessment of all property in this State 
between persons of the same assessment district, between cities, towns and 
townships of the same county and between different counties of the State and 
the property assessed by the Commission in the first instance. 

1942 Code §2431; 1932 Code §2431; Civ. C. '22 §368; 1916 (29) 959. 

294 



§ 65-68 Taxation § 65-72 

§ 65-68. Compromise of cases of confiscation or seizure. 

The Commission, in its discretion and for good cause shown, may com- 
promise any cases of seizure or confiscation made by it by returning to the 
owner in whole or in part goods seized or confiscated. 

19-12 Code § 242S; 1932 Code §2428; 1928 (35) 1180. 

§ 65-69. Sheriffs and tax collectors to serve executions issued by Commission. 

In all counties in which the duties of collecting delinquent property taxes 
have been taken from the sheriffs and imposed upon tax collectors, such tax 
collectors shall serve all executions issued by the Commission in the same 
manner as executions issued by county treasurers for delinquent property 
taxes. When there is lack of definite authority in the statutes creating the 
office of any such tax collector as to the collection of delinquent taxes col- 
lected by the Commission, the sheriffs of such counties shall serve all execu- 
tions issued by the Commission for delinquent taxes in the same manner as 
is provided by law for the collection of delinquent property taxes. 

1947 (45) 138. 

§ 65-70. Failure of sheriff to collect executions or report violations to Com- 
mission. 

Negligent or wilful failure on the part of any sheriff to collect, in whole or 
in part, and within the time prescribed by law any execution issued by the 
Commission or negligent and wilful failure to report violations or inability 
to make collections to the Commission shall be a breach of the official bond of 
the sheriff and he shall be liable to the Commission for the full amount of the 
execution or of such part thereof as he has so failed to collect, which shall 
be recovered in a suit upon his official bond, together with interest thereon at 
the rate of twenty per cent per annum. 

1942 Code §2554-1; 1932 Code §2554-A; 1925 (34) 359; 1926 (36) 905. 

§65-71. Members may make investigations in counties. 

One or more members of the Commission may visit any of the counties in 
the State to investigate the work of all assessors and all taxing officers in 
the assessment, equalization and taxation of all property subject to taxation. 

1942 Code §2426; 1932 Code §2426; Civ. C. '22 §365; 1915 (29) 125; 1916 (29) 959. 

§65-72. Witnesses before Commission; oaths, attendance, paying, etc. 

Oaths to witnesses in any matter under investigation or consideration by 
the Commission may be administered by the secretary of the Commission 
or by any member thereof. In case any witness shall fail to obey any sum- 
mons to appear before the Commission or any member thereof or shall refuse 
to testify, to answer any question or to produce records, books, papers or 
documents when required so to do, such failure or refusal shall be reported 
to the Attorney General who shall thereupon institute proceedings in the 
circuit court to compel obedience to any summons or order of the Commis- 
sion. Any person who shall testify falsely in any matter under consideration 
by the Commission shall be guilty of, and punished for, perjury. Officers 

295 



§ 65-101 Code of Laws of South Carolina § 65-102 

who serve summons or subpoenas and witnesses attending shall receive like 
compensation as officers and witnesses in the circuit court. Such compensa- 
tion shall be paid upon certificate of the Commission by the county for whose 
benefit such investigation is made. 

1942 Code §§ 1722, 2429; 1932 Code §§ 1722, 2429; Civ. C. '22 §366; Cr. C. '22 §668; 

1915 (29) 125. 



CHAPTER 3. 
Tax Board of Review. 

Sec. Sec. 

65-101. Membership, appointment and 65-107. Hearing before Board. 

term. 65-108. Quorum; majority for reversal of 

65-102. Duties of chairman; chairman pro Commission. 

tern; clerical help. 65-109. Compensation of county equaliza- 

65-103. Compensation of members of tion board chairman in such cases. 

Board. 65-110. Report of conclusions to Commis- 

65-104. Meetings and hearing of appeals. sion. 

65-105. Right of appeal to Board. 65-111. Report to Governor when Commis- 

65-106. How appeal taken. sion reversed. 

§ 65-101. Membership, appointment and term. 

The Tax Board of Review shall consist of a chairman and six other mem- 
bers, who shall be appointed by the Governor, one from each congressional 
district, by and with the advice and consent of the Senate. The term of office 
of the chairman shall be for four years and until his successor is appointed 
and qualified. The terms of office of the other six members shall be coterminal 
with that of the Governor appointing them and until their successors are 
appointed and qualified. 

1942 Code §2433; 1932 Code §2433; Civ. C. '22 §370; 1916 (29) 959. 

§65-102. Duties of chairman; chairman pro tern; clerical help. 

The chairman of the Tax Board of Review shall familiarize himself with the 
statutes relating to taxation and the procedure of the Commission. He shall 
preside over all meetings of the Board and shall see that the required reports 
to the Governor and to the Commission are promptly made. The chairman 
shall fix the order of hearing such appeals as may come before the Board and 
shall, before each meeting of the Board, prepare a roster of cases and mail a 
copy thereof to each appellant. He shall see that all records, books and papers 
necessary to hearing an appeal are in order and convenient for the use of 
the Board. The Board may select a chairman pro tern who, in the absence 
of the chairman, may preside over the meetings of the Board. The Commis- 
sion shall supply such clerical help to the chairman as may be necessary for 
the prompt discharge of the duties provided in this section. 

1942 Code §2433; 1932 Code §2433; Civ. C. '22 §370; 1916 (29) 959. 



296 



§ 65-103 Taxation § 65-106 

§65-103. Compensation of members of Board. 

The compensation of the members of the Hoard shall be a per diem and 
mileage as paid members of the General Assembly, the per diem not to be paid 
for more than thirty days in any one year, except that the chairman shall not 
be limited to thirty days' service in any one year and he shall also receive 
actual expenses while engaged in the performance of his duties. 

1942 Code §2434; 1932 Code §2434; Civ. C. '22 §371; 1916 (29) 959; 1951 (47) 506. 

§ 65-104. Meetings and hearing of appeals. 

The Board shall meet in the city of Columbia, at such times as it may deem 
necessary or upon ten days' notice given each member by the Commission 
and at least once in every three months should there be any appeals to be 
heard, to hear and determine appeals as provided for in this chapter and it 
shall keep a docket showing the appeals presented to it and a record of its 
reasons for its findings in each appeal and shall furnish forthwith to the tax- 
payer a copy of such record. 

1942 Code §§2432, 2433; Civ. C. '22 §§369, 370; 1916 (29) 959; 1925 (34) 205. 

§ 65-105. Right of appeal to Board. 

Whenever the Commission shall make any assessment in the first instance 
or shall increase any assessment made by any board of assessors it shall mail 
or otherwise transmit notice thereof to the person affected thereby or, when 
as many as twenty per cent of the taxpayers of the county, municipality or 
tax district are affected thereby, to the chairman of the board of equalization 
of such county, municipality or tax district in which case such chairman 
shall give public notice thereof for at least one week in one or more county 
newspapers. Any person feeling aggrieved by any such assessment or in- 
crease of assessment and desiring a review by the Board or the chairman 
of the county board of equalization or any other taxpaying citizen shall 
have the right in behalf of himself and in behalf of all the taxpayers of the 
county, municipality or tax district as a body to appeal to the Board. 

1942 Code §2432; 1932 Code §2432: Civ. C. '22 §369; 1916 (29) 959; 1925 (34) 205. 

What constitutes increase in assessment. owner, it is error to force collection of the 
— Where county board of assessors raised increased taxes before allowing him an op- 
assessment made by township board, and portunity to appeal to the Tax Board of 
State Tax Commission affirmed action of Review, though it is contended that the in- 
county board of assessors, approving and creased assessment is so much less than the 
adopting it as its action, the Tax Board of actual value of the property that the owner 
Review under this section has jurisdiction was not prejudiced by failure to give no- 
on appeal, the action of the Tax Commission tice; that being a mere assumption of a 
operating as increase in assessment. Beten- fact, which the owner is entitled to have 
baugh v. South Carolina Tax Comra., 134 tried on proper notice by the Board of Re- 
S. C. 281, 132 S. E. 589 (1926). view. Gibson v. Haynie, 122 S. C. 216, 115 

Notice of increase indispensable regard- S. E. 298 (1922). 
less of actual value of property. — Where Cited in State v. Cromer, 35 S. C. 213, 14 

the assessed valuation of property for tax- S. E. 493 (1S92). 
ation is increased without notice to the 

§ 65-106. How appeal taken. 

Within ten days after receipt by mail or otherwise of such notice of 
increase by the Commission, such person or representative of the county, 

297 



§65-107 Code of Laws of South Carolina §65-111 

municipality or tax district shall serve by mail or otherwise upon the chair- 
man of the Commission a written notice of his intention to appeal to the 
Board together with the specific grounds upon which a reversal or modifica- 
tion of the action of the Commission is desired and, upon such notice and 
grounds being served, the Commission shall transmit to the Board all papers, 
books and documents relating to the matters to be reviewed together with 
any statement the Commission may desire to make. 

1942 Code §2432; 1932 Code §2432; Civ. C. '22 §369; 1916 (29) 959; 1925 (34) 205. 

§ 65-107. Hearing before Board. 

Upon such notice, exceptions, records and statement the Board shall make 
its findings and may affirm, modify or reverse the action of the Commission. 
The appellant and the Commission shall be entitled to a hearing before the 
Board in person or by such attorneys as the appellant and the Commission 
may employ. 

1942 Code §2432; 1932 Code §2432; Civ. C. '22 §369; 1916 (29) 959; 1925 (34) 205. 

§ 65-108. Quorum; majority for reversal of Commission. 

Five members of the Board shall constitute a quorum, but it shall take the 
vote of the majority of the whole Board to reverse or modify the action of 
the Commission. 

1942 Code §2433; 1932 Code §2433; Civ. C. '22 §370; 1916 (29) 959. 

§ 65-109. Compensation of county equalization board chairman in such cases. 

The chairman of the county board of equalization shall be paid a per diem 

and actual railroad fare for the necessary time engaged in any such appeal, 

not exceeding five days in any one year, to be paid by the county he represents. 

1942 Code § 2432; 1932 Code § 2432; Civ. C. '22 § 369; 1916 (29) 959; 1925 (34) 205; 1951 
(47) 506. 

§ 65-110. Report of conclusions to Commission. 

The Board shall report its conclusions to the Commission. 
1942 Code §2433; 1932 Code §2433; Civ. C. '22 §370; 1916 (29) 959. 

§ 65-111. Report to Governor when Commission reversed. 

Whenever the Board shall modify or reverse the Commission in any par- 
ticular, the Board shall make a report to the Governor thereof which shall 
set forth a full and complete statement of the facts involved, together with 
the reasons upon which such modification or reversal is based. 

1942 Code §2433; 1932 Code §2433; Civ. C. '22 §370; 1916 (29) 959. 



298 



§65-151 



Taxation 



§65-153 



CHAPTER 4. 
Poll Tax. 



Sec. 

65-151. Imposition of tax. 

65-152. Report of school district on tax re- 
turns. 

65-153. Auditor to report polls, etc. 

65-154. Auditor to report lists for poll tax 
and special levies. 

65-155. Assessors to investigate exemptions 
claimed from poll taxes in Ander- 
son and Chester Counties. 



Sec. 

65-156. Collection and use of poll tax. 

65-157. Segregation of poll tax in Colleton 
County. 

65-158. County treasurer to report persons 
paying poll tax. 

65-159. City of Charleston separate school 
district for poll tax purposes. 

65-160. Nonpayment of poll tax a misde- 
meanor. 



§65-151. Imposition of tax. 

There shall be assessed on all taxable polls an annual tax of one dollar on 
each poll, the proceeds of which shall be applied solely to educational pur- 
poses. All males between the ages of twenty-one and sixty years, except 
those incapable of earning a support from being maimed or from any other 
cause, shall be deemed taxable polls. 

19-12 Code §2565: 1932 Code §2565; Civ. C. '22 §334: Civ. C. '12 §286; Civ. C. '02 
§ 259; G. S. 168; R. S. 216; 1881 (17) 985 § 153; 1909 (26) 77. 



Cross references. — As to collection, see 
§ 65-2781. As to criminal liability for fail- 
ure to pay poll tax, see § 65-160. As to 
use of proceeds from poll tax for school 
funds, see S. C. Const., Art. 11, § 6. As to 
exemption of service men from poll tax, see 
§ 44-464. 



Editor's note.— S. C. Const., Art. 2, § 4 
(e), making payment of poll tax a condition 
precedent to voting, was amended by elim- 
ination of said provision in 1951 Acts [1951 
(47) 24]. 

Poll tax is constitutional, but limited to 
use for educational purposes. State v. Cobb, 
8 S. C. 123 (1877). 



§ 65-152. Report of school district on tax returns. 

The county auditor shall require each taxpayer to return the number 

and name of the school district in which he resides when he makes his tax 

return. 

1942 Code §5363; 1932 Code §5392; Civ. C. '22 §2636; Civ. C. "12 § 1768; Civ. C. '02 
§ 1219; 1896 (22) 165. 

§ 65-153. Auditor to report polls, etc. 

Each auditor shall state, in a separate column, the school district in which 

the taxpayer resides. When the chairmen of the township boards of assessors 

have reported to him the names of all persons who have failed or neglected 

to make returns he shall enter upon his books the names of all persons thus 

reported to him and he shall enter the names of such persons upon the tax 

duplicate furnished the county treasurer. Any auditor failing to comply with 

any of the provisions of this section shall be guilty of a misdemeanor and 

upon conviction before a court of competent jurisdiction shall be fined in 

a sum of not more than one hundred dollars or be imprisoned for a term 

not exceeding thirty days. 

1942 Code § 1566; 1932 Code § 1566; Cr. C. '22 § 514; Cr. C. '12 § 583; Cr. C. '02 § 426; 
R. S. 339; 1890 (20) 718; 1891 (20) 1049; 1892 (21) 18. 



299 



§ 65-154 Code of Laws of South Carolina § 65-157 

§ 65-154. Auditor to report lists for poll tax and special levies. 

The county auditor, when he has completed the tax duplicates, shall report 
to the county superintendent of education, by school districts, the names 
listed for poll tax and the amount of taxable property when there is a 
special levy. At the expiration of the time prescribed by law to receive re- 
turns he shall make out and forward to the board of trustees of each school 
district within his county a correct list of the polls returned from their re- 
spective districts. 

1942 Code §§ 1566, 2708, 5364; 1932 Code §§ 1566, 2708, 5393; Civ. C. '22 §§440, 2637; 
Cr. C. '22 § 514; Civ. C. '12 §§ 388, 1769; Cr. C. '12 § 583; Civ. C. '02 §§ 347, 1220; Cr. C. 
'02 §426; R. S. 280, 339; 1890 (20) 718; 1891 (20) 1049; 1892 (21) 18; 1896 (22) 165. 

§ 65-155. Assessors to investigate exemptions claimed from poll taxes in 
Anderson and Chester Counties. 

In Anderson and Chester Counties any person entitled to exemption from 
the payment of poll taxes under the general laws of this State shall, before 
being relieved of the payment of such taxes, secure from the board of as- 
sessors of the district in which he resides, or a majority thereof, and file 
with the auditor of his county a written statement to the effect that the 
board has investigated the taxpayer's claim for such exemption and, in its 
opinion, he is entitled to such exemption. The auditors of said counties are 
forbidden to allow any person's claim for exemption from the payment of 
poll tax unless and until such a statement shall have been filed with him. 

1942 Code §2842-2; 1939 (41) 221. 

§ 65-156. Collection and use of poll tax. 

The several county treasurers shall retain the poll tax collected in their 
respective counties. In collecting the poll tax the treasurer shall keep an 
account of the exact amount of such tax collected in each school district in 
his county. The poll tax collected in any school district shall be expended 
for school purposes in the district from which it was collected. Any viola- 
tion of this section by the county treasurer shall constitute a misdemeanor, 
and, on conviction thereof, any such county treasurer shall pay a fine of 
not more than five hundred dollars, to be used for school purposes in the 
county suffering from such violation, or be imprisoned, in the discretion of 
the court. 

1942 Code §§ 1563, 5365; 1932 Code §§ 1563, 5394; Civ. C. '22 §2638; Cr. C. '22 § 511; 
Civ. C. '12 § 1770; Cr. C. '12 § 580; Civ. C. '02 § 1221; Cr. C. '02 §423; G. S. 1021; R. S. 
336; 1878 (16) 582; 1896 (22) 150. 

§ 65-157. Segregation of poll tax in Colleton County. 

In Colleton County any poll tax payer may have his poll tax segregated 
from his other taxes and upon paying such poll tax shall have due receipt 
therefor. 

1942 Code § 2853; 1935 (39) 290. 



300 



§65-158 



Taxation 



§65-160 



§ 65-158. County treasurer to report persons paying poll tax. 

Each county treasurer, when he has finished the collection of taxes for his 

county, shall report to the county superintendent of education the names 

of the persons in the respective school districts who have paid their poll tax. 

1942 Code §5366; 1932 Code §5395; Civ. C. '22 §2639; Civ. C. '12 §1771; Civ. C. '02 
§ 1222; 1896 (22) 165. 

§ 65-159. City of Charleston separate school district for poll tax purposes. 

For the purpose of § 65-156 the city of Charleston shall be deemed a school 

district, and the county treasurer shall pay over to the city board of school 

commissioners the amount of poll tax collected in said city. 

1942 Code § 1563; 1932 Code § 1563; Cr. C. '22 § 511; Cr. C. '12 § 580; Cr. C. '02 §423; 
G. S. 1021; R. S. 336; 1878 (16) 582. 



§ 65-160. Nonpayment of poll tax a misdemeanor. 

Any person failing or refusing to pay his poll tax within the time pre- 
scribed by law shall be guilty of a misdemeanor and, on conviction thereof, 
shall be punished by fine not exceeding ten dollars, together with the costs 
of the suit, or by imprisonment at hard labor on the public works of the county 
for not more than twenty days. The county shall not pay the costs or fees 
of any constable or sheriff for the execution of any warrant or other process 
issued in any case by virtue of the provisions of this section unless the de- 
fendant in such case shall be arrested and convicted. 

1942 Code § 1720; 1932 Code §1720; Cr. C. '22 §666; Cr. C. '12 §689; Cr. C. '02 §492; 
R. S. 377; 1S92 (21) 43; 1899 (23) 120; 1901 (23) 780; 190S (25) 1245. 



Voluntary payment of delinquent poll 
taxes with penalties may be accepted. — 
The fact that this section makes default 
in payment of poll taxes a misdemeanor, 
will not prevent the collecting officer from 
accepting voluntary payment of delinquent 
poll taxes with penalties. State v. Folk, 45 
SC 491, 23 SE 628 (1896). 

And when collected funds belong to 
school fund. — Under S. C. Const., Art. 11. 
§ 6 which disposes of the proceeds of poll 
taxes for the benefit of the public schools, 
delinquent poll taxes with penalties paid to 
the county treasurer before prosecution was 
begun under this section, belong to the 
school fund. State v. Folk, 45 S. C. 491, 
23 S. E. 628 (1896). 

Warrant issued is a criminal process. — A 



warrant issued under this section is not a 
process for the collection of taxes, but a 
criminal process, and the sheriff is entitled 
to his fees though the warrant is returned 
non est inventus, and though the act under 
which the warrant was issued had expired 
by its own limitation. Rogers v. Marlboro 
County, 32 S. C. 555, 11 SE 383 (1890). 

And sheriff is entitled to fees for serving 
such warrants. — The statute providing that, 
where judgment is entered or execution is- 
sued in the courts of general sessions for 
fines, fees or costs, nulla bona costs shall 
not be paid to the sheriff or clerk, does 
not apply to sheriff's fees for attempting to 
serve warrants issued by a trial justice, 
under this section. Rogers v. Marlboro 
County, 32 S. C. 555, 11 SE 383 (1890). 



301 



Code of Laws of South Carolina 



CHAPTER 5. 
Income Tax Act of 1926.* 



Article 1. 



General Provisions. 
Sec. 
65-201. Short title. 
6S-202. Definitions. 
65-203. Tax Commission to administer 

chapter. 
65-204. Income Tax Director and other 

employees. 
65-205. Salaries of employees. 
65-206. Bonds of employees. 
65-207. Regulations. 
65-208. Publication of statistics. 

Article 2. 

Imposition of Tax; Exemptions 
and Exempt Organizations. 

65-221. Imposition of the tax on individuals. 
65-222. Tax on corporations. 
65-223. Tax on fiduciaries. 
65-224. Liability of partners. 
65-225. Exemptions. 

65-225.1. Exemptions for persons in mili- 
tary service. 
65-226. Organizations that are exempt 

Article 3. 
Nonresidents. 

65-231. Nonresidents carrying on entire 

business in State. 
65-232. Nonresident manufacturing, etc., 

within State. 
65-233. Nonresident distributors, etc. 
65-234. Other nonresidents. 
65-235. Sale of real estate by nonresident 
65-236. Definition of tangible property. 
65-237. Valuation of tangible property. 
65-238. Meaning of "entire net income" in 

case of apportionment. 
65-239. Determining income on basis of 

nonresident's books. 
65-240. Limitations of deductions allowed 

nonresidents. 
65-241. Credit to nonresidents for tax paid 

in home state. 

Article 4. 

Gross and Net Income; 
Deductions. 

65-251. Gross income defined. 

65-252. Income of beneficiaries of trusts. 

65-253. Items not included in gross income. 



Sec. 

65-254. Compensation for certain military 
service not included. 

65-255. Net income defined. 

65-256. Net income of public service cor- 
porations. 

65-257. Same; car hire of railroads consid- 
ered. 

65-258. Adjusted gross income defined for 
§ 65-260. 

65-259. Deductions. 

65-260. Optional standard deduction. 

65-261. Same; option must be exercised 
when return filed and is irrevo- 
cable. 

65-262. Deduction of United States income 
tax must be of amount actually 
paid in year. 

65-263. Contributions of public service cor- 
porations. 

65-264. Amortization of defense facilities. 

65-265. Items not deductible. 

Article S. 
Gain or Loss and Basis Therefor. 

65-271. Basis for determination of gain or 
loss. 

65-272. No gain or loss in 1951 or 1952 on 
certain property sold to or con- 
demned by United States. 

65-273. Gain or loss on exchanges gen- 
erally. 

65-274. No gain or loss on corporate or- 
ganizations generally. 

65-275. No gain or loss on corporate re- 
organizations generally. 

65-276. Basis for gain or loss on certain 
corporate organizations, mergers, 
etc. 

65-277. Gain or loss on corporate liquida- 
tions. 

Article 6. 

Accounting Methods and Periods. 

65-281. Methods. 

65-2S2. Fiscal year. 

65-283. Change from fiscal to calendar year 

and vice versa. 
65-284. When inventories must be taken. 
65-285. Determination of income in case of 

arbitrary shifting. 



* As to payment of income tax prior to settlement of fiduciary's account, see §67-66. 
As to agreement upon income taxes due from fiduciaries, see § 67-67. 

302 



§ 65-201 



Taxation 



§ 65-201 



Article 7. 

Returns. 
Sec. 

65-291. Who required to make returns. 

65-292. Return when individual unable to 
make it. 

65-293. Return of deceased individual. 

65-294. Execution of corporate return. 

65-295. Return of partnership. 

65-296. Return of estate or trust. 

65-297. When consolidated returns per- 
mitted. 

65-298. Returns of less than year when in- 
come year changed. 

65-299. Information returns. 

65-300. Commission to furnish blank re- 
turns. 

65-301. Use of form of Federal returns. 

65-302. Returns need not be sworn to but 
are subject to penalties of perjury. 

65-303. Time and place of filing returns. 

65-304. Failure to file returns; supplemen- 
tary returns. 

65-305. Mandamus to require filing of re- 
turn. 

65-306. Determination of income by Com- 
mission. 

65-307. Secrecy of reports and returns. 

65-308. Same; exceptions. 

65-309. Oaths and acknowledgments. 

Article 8. 

Examinations, Deficiencies and Illegal 
or Excessive Assessments. 

65-321. Examination of returns; interest 
and penalties on deficiencies. 

65-322. Assessment of additional taxes. 

65-323. Refund of taxes illegally collected. 

65-324. Examination of books, etc. 

65-325. Summons to produce books, etc. 

65-326. Enforcement of summons by court. 

65-327. Revision by Commission on appli- 
cation of taxpaver. 

65-328. Blank. 

65-329. Blank. 

65-330. Interest on refunds or credits. 



Article 9. 
Payment, Collection and Use of Tax. 

Sec. 

65-341. When tax payable; installment pay- 
ments. 

65-342. Payment by uncertified check. 

65-343. Jeopardy assessments and collec- 
tions. 

65-344. Issue of warrant for collection. 

65-345. Docketing of warrant and lien 
thereof. 

65-346. Collection of warrant; fees of of- 
ficers. 

65-347. Collection when warrant not satis- 
fied. 

65-348. Tax a debt. 

65-349. Action for recovery of taxes. 

65-350. Compromises by Commission. 

65-351. Blank. 

65-352. Allocation of income tax revenue. 

65-353. Expenses incurred under certain sec- 
tions. 

Article 10. 
Penalties. 

65-361. Increase of tax for failure to file 
return or pay tax generally. 

65-362. Increase of tax for intentional fail- 
ure to file or pay. 

65-363. Additional penalty for nonfraudu- 
lent failure to file, pay, etc. 

65-364. Additional penalty for fraudulent 
failure to file, pay, etc. 

65-365. Commission may waive or reduce 
penalties or interest. 

65-366. All failures deemed to take place in 
Columbia. 

65-367. Certificate of Commission as prima 
facie evidence. 



Article 1. 
General Provisions. 

§65-201. Short title. 

This chapter shall be known and may be cited as the "Income Tax Act of 
1926." 

1942 Code §2435; 1932 Code §2435; 1927 (35) 1. 



Editor's note. — The first Income Tax 
Law of South Carolina was approved March 
13th, 1922. It appeared in 32 Statutes at 
Large, p. 896, and was known and re- 



ferred to as the Income Tax Act of 1922. 
It did not appear in the Code of 1922 for 
the reason that the Act of the Legislature 
under which that publication was published, 



303 



§ 65-202 Code of Laws of South Carolina § 65-202 

provided that the Code should contain only cases have, however, been placed under 

the general statutory laws in force up to those sections of this chapter which appear 

and inclusive of the year 1921. to resemble closely the section of the 1922 

The present chapter, known as the In- Act, but which were omitted, 

come Tax Act, is in many respects ma- Constitutionality of Income Tax Act. — 

terially different from the Act of 1922. The Santee Mills v. Query, 122 S. C. 158, US S. 

cases decided under the 1922 Act were, in E. 202 (1922) ; Southern Ry. Co. v. Query, 

many instances based upon provisions which 21 F. (2d) 333 (1927). 
are no longer found in the Code. These 

§ 65-202. Definitions. 

For the purposes of this chapter, unless otherwise required by the context: 

(1) The word "taxpayer" means any individual, fiduciary or corporation sub- 
ject to the tax imposed by this chapter ; 

(2) The word "fiduciary" means a guardian, trustee, executor, adminis- 
trator, receiver, conservator, or any person, whether individual or corporate, 
acting in any fiduciary capacity for any person, estate or trust ; 

(3) The word "person" includes individuals, fiduciaries, partnerships and 
corporations ; 

(4) The word "corporation" includes joint-stock companies or associations 
and insurance companies ; 

(5) The word "business" includes trade, profession, occupation or employ- 
ment ; 

(6) The words "tangible property" mean real property and corporeal per- 
sonal property and do not mean money, bank deposits, shares of stock, bonds, 
credits, evidences of debt, choses in action or evidences of an interest in prop- 
erty ; 

(7) The words "intangible property" mean all property other than tangible 
property; 

(8) The words "income year" means the calendar year or the fiscal year 
upon the basis of which the net income is computed under this chapter; if no 
fiscal year has been established they mean the calendar year ; 

(9) The words "fiscal year" mean an income year ending on the last day 
of any month other than December; 

(10) The word "paid" for the purpose of the deductions under this chapter 
means "paid or accrued" or "paid or incurred" and the words "paid or accrued," 
"paid or incurred" and "incurred" shall be construed according to the method 
of accounting upon the basis of which the net income is computed under this 
chapter; 

(11) The word "received" for the purpose of the computation of net income 
under this chapter means "received or accrued" and the words "received and 
accrued" shall be construed according to the method of accounting upon the 
basis of which the net income is computed under this chapter ; and 

(12) The words "foreign corporation" mean any corporation other than a 
domestic corporation. 

1942 Code §2436; 1932 Code §2436; 1927 (35) 1. 

Income is to be taken in its ordinary Co. v. Query, 206 S. C. 307, 34 S. E. (2d) 
sense of gain or profit. Southern Weaving 51 (1945). 

304 



§ 65-203 Taxation § 65-208 

Applied in Read Phosphate Co. v. South Tax Coram., 189 S. C. 346, 1 S. E. (2d) 
Carolina Tax Conim., 169 S. C. 314, 168 244 (1939); Iladden v. South Carolina Tax 
S. E. 722 (1933); Gable v. South Carolina Comra., 183 S. C. 38, 190 S. E. 249 (1937). 

§ 65-203. Tax Commission to administer chapter. 

The Commission shall administer and enforce the taxes imposed by this 
chapter. 

1942 Code §2470; 1932 Code §2470; 1927 (35) 1. 

§ 65-204. Income Tax Director and other employees. 

The Commission may appoint and remove a person to be known as the In- 
come Tax Director who, under its direction, shall have the supervision and 
control of the assessment and collection of the income taxes provided in this 
chapter. The Commission may also appoint such other officers, agents, dep- 
uties, clerks and employees as it may deem necessary to carry out the provi- 
sions of this chapter, such persons to have such duties and powers as the Com- 
mission may from time to time prescribe. 

1942 Code §2472; 1932 Code §2472; 1927 (35) 1. 

§ 65-205. Salaries of employees. 

The salaries of all officers, agents and employees employed by the Commis- 
sion to carry out the provisions of this chapter shall be such as it may prescribe, 
not to exceed such amounts as ma)' be appropriated therefor by the General 
Assembly, and the members of the Commission and such officers, agents and 
employees shall be allowed such reasonable and necessary travelling and other 
expenses as may be incurred in the performance of their duties under this 
chapter, not to exceed the amount appropriated therefor by the General As- 
sembly. 

1942 Code §2472; 1932 Code §2472; 1927 (35) 1. 

§ 65-206. Bonds of employees. 

The Commission may require such of its officers, agents and employees 
employed to carry out the provisions of this chapter as it may designate to 
give bond for the faithful performance of their duties in such sum and with 
such sureties as it may determine and all premiums on such bonds shall be 
paid by the Commission out of moneys appropriated for the purpose of this 
chapter. 

1942 Code §2472; 1932 Code §2472; 1927 (35) 1. 

§ 65-207. Regulations. 

The Commission may, from time to time, make such rules and regulations, 
not inconsistent with this chapter, as it may deem necessary to enforce its pro- 
visions and such rules and regulations shall have full force and effect of law. 

1942 Code §2476; 1932 Code §2476; 1927 (35) 1. 

§ 65-208. Publication of statistics. 

The Commission shall prepare and publish annually statistics reasonably 
available with respect to the operation of this chapter, including amounts col- 
[6 SC Code]— 20 305 



§ 65-221 Code of Laws of South Carolina § 65-222 

lected, classifications of taxpayers and such other facts as are deemed perti- 
nent and valuable. 

1942 Code §2474; 1932 Code §2474; 1927 (35) 1. 

Article 2. 
Imposition of Tax; Exemptions and Exempt Organizations. 

§ 65-221. Imposition of the tax on individuals. 

A tax is imposed upon every individual residing in the State, including offi- 
cers and employees of the State and all subdivisions thereof, which shall be 
levied, collected and paid annually with respect to the entire net income of the 
taxpayer, and upon income earned within the jurisdiction of this State of 
every nonresident having a business or agency in the State or from the sale 
or rental of or income from property within this State, computed at the fol- 
lowing rates, after deducting the exemptions provided by this chapter: 

On the excess over the amount legally exempted up to two thousand dol- 
lars, two per cent ; 

On the excess above two thousand dollars and up to four thousand dollars, 
three per cent ; 

On the excess above four thousand dollars and up to six thousand dollars, 
four per cent; 

On the excess above six thousand dollars, five per cent. 

1942 Code §§2437, 2438; 1932 Code §§2437, 2438; 1926 (34) 1050; 1927 (35) 1; 1930 
(36) 1339; 1933 (38) 572; 1946 (44) 1491. 

The word "residing" refers to legal resi- one state. Phillips v. South Carolina Tax 

dence in this State, which is equivalent to Comm., 195 S. C. 472, 12 S. E. (2d) 13 

domicile. Phillips v. South Carolina Tax (1940). 

Comm., 195 S. C. 472, 12 S. E. (2d) 13 For additional related case, see Alder- 

(1940). man v. Wells, 85 S. C. 507, 67 SE 781 (1910). 

Double taxation. — The provisions of this Cited in Cooley v. South Carolina Tax 

section indicate the legislative intent against Comm., 204 S. C. 10, 28 S. E. (2d) 445 

the principle of double taxation, that is, (1943). 
taxation on the same income by more than 

§ 65-222. Tax on corporations. 

Every corporation organized under the laws of this State shall make a 
return and shall pay annually an income tax equivalent to four and one-half 
per cent of the entire net income of such corporation received by such corpora- 
tion during the income tax year and, except as otherwise provided, every 
foreign corporation doing business or having an income within the jurisdiction 
of this State shall make a return and shall pay annually an income tax equiv- 
alent to four and one-half per cent of a proportion of its entire net income 
to be determined as provided in this chapter; provided, that the amount of 
such tax shall not be less than would be produced by applying a rate of three 
per cent to a base consisting of the entire net income plus salaries and other 
compensation paid to all elective and appointed officers and to any stockholder 
owning in excess of five per cent of the issued capital stock of the corporation, 

306 [6SCCode] 



§ 65-223 Taxation § 65-225 

after deducting from the base six thousand dollars and any deficit reported for 
the year. 

1946 (44) 1491. 

§ 65-223. Tax on fiduciaries. 

The tax imposed by this chapter shall be imposed upon resident fiduciaries 
and upon nonresident fiduciaries having in charge funds or property for the 
benefit of a resident of this State and shall be levied, collected and paid an- 
nually with respect to: 

(1) That part of the net income of estates or trusts which has not been 
distributed; 

(2) The net income received during the income year by deceased indi- 
viduals who at the time of death were residents and who have died during 
the tax year or income year without having made a return; and 

(3) The entire net income of resident insolvent or incompetent individuals, 
whether or not any portion thereof is held for the future use of the benefi- 
ciaries, when the fiduciary has complete charge of such net income. 

The tax imposed upon a fiduciary by this chapter shall be a charge against 
the estate or trust. 

1942 Code §2440; 1932 Code §2440; 1927 (35) 1, 362; 1930 (36) 1339, 1393. 

Cross reference. — As to nonresidents, see The fundamental theory underlying the 

§§ 65-231 to 65-241. income tax laws is that all residents and 

Income tax is a personal liability. — The citizens of the State should contribute to 

State income tax is in the nature of a sub- the public treasury in proportion to abil- 

jective tax imposing personal liability on ity to pay, measured by the amount of 

the recipient of income. Crescent Mfg. Co. net income from all sources. Crescent Mfg. 

v. South Carolina Tax Comm., 129 S. C. Co. v. South Carolina Tax Coram, 129 S. C. 

480, 124 S. E. 761 (1924). 480, 124 S. E. 761 (1924). 

§ 65-224. Liability of partners. 

An individual carrying on business in partnership shall he liable for income 
tax only in his individual capacity and shall include in his gross income 
his distributive share of the net income of the partnership for each income year, 
whether distributed or not. 

1942 Code §2445; 1932 Code §2445; 1927 (35) 1. 

§ 65-225. Exemptions. 

There shall be deducted from net income the following exemptions : 

(1) In the case of a single individual, a personal exemption of one thousand 
dollars; 

(2) In the case of a married individual living with husband or wife or the 
head of a household, two thousand dollars ; 

(3) If a husband and wife living together make separate income tax returns, 
the personal exemption of two thousand dollars may be taken by either or 
divided between them, but in no case shall a husband and wife living together 
receive more than one personal exemption ; 

(4) If a husband and wife are legally separated each shall be entitled to the 
exemption allowed a single person; 

307 



§ 55-225.1 Code of Laws of South Carolina § 65-226 

(5) Four hundred dollars for each individual other than husband or wife 
dependent upon and receiving his chief support from the taxpayer if such de- 
pendent individual is under twenty-one years of age or is incapable of self 
support because mentally or physical defective; 

(6) In the case of a fiduciary (a) if taxable under item (1) of § 63-223, a 

personal exemption of one thousand dollars, (b) if taxable under item (2) of 

said section, the same exemption as would be allowed the deceased if living 

and (c) if taxable under item (3) of said section, the same exemptions to which 

the beneficiary would be entitled ; provided, that if the income is held in the 

estate undistributed the exemption shall be one thousand dollars. 

1942 Code §2441; 1932 Code §2441; 1927 (35) 1, 217; 1930 (36) 1339; 1933 (38) 572; 
1951 (47) 546. 

§ 65-225.1. Exemptions for persons in military service. 

In computing the income tax of persons who are engaged in the military 
service of the United States, the Commission shall allow the same exemptions 
as are allowed by the Federal Government in computing Federal income taxes. 

1945 (44) 502. 

§ 65-226. Organizations that are exempt. 

The following organizations shall be exempt from taxation under this 
chapter: 

(1) Fraternal beneficiary societies, orders or associations (a) operating 
under the lodge system or for the exclusive benefit of the members of a fra- 
ternity itself operating under the lodge system and (b) providing for the 
payment of life, sick, accident or other benefits to the members of such society, 
order or association or their dependents ; 

(2) Building and loan associations and cooperative banks without capital 
stock, organized and operated for mutual purposes and without profits, and 
insurance companies ; 

(3) Cemetery corporations and corporations organized for religious, char- 
itable, scientific or educational purposes or for the prevention of cruelty to 
children or animals, no part of the net earnings of which inures to the benefit of 
any private stockholder or individual ; 

(4) Business leagues, chambers of commerce or boards of trade, not organ- 
ized for profit and no part of the net earnings of which inures to the benefit of 
any private stockholder or individual ; 

(5) Civic leagues or organizations not organized for profit, but operated 
exclusively for the promotion of social welfare ; 

(6) Farmers' or other mutual hail, cyclone or fire insurance companies, 
mutual ditch or irrigation companies, mutual or cooperative telephone com- 
panies or like organizations of a purely local character, the income of which 
consists solely of assessments, dues and fees collected from members for the 
sole purpose of meeting expenses ; 

(7) Farmers', fruit growers' or like organizations, organized and operated 
as sales agents for the purpose of marketing the products of members and 

30S 



§ 65-231 Taxation § 65-232 

turning back to them the proceeds of sales, less the necessary selling expenses, 
on the basis of the quantity of produce furnished by them ; and 

(8) Labor, agricultural or horticultural organizations no part of the net 
earnings of which inures to the benefit of any private stockholder or member. 

1942 Code §2442; 1932 Code §2442; 1927 (35) 1. 

Article 3. 
Nonresidents. 

§ 65-231. Nonresidents carrying on entire business in State. 

If the entire trade or business of a nonresident individual or foreign cor- 
poration is carried on in the jurisdiction of this State the tax imposed by this 
chapter shall be computed upon the entire net income of such nonresident in- 
dividual or foreign corporation. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

Applied in United States Rubber Prod- 
ucts v. South Carolina Tax Coram., 189 S. 
C. 386. 1 S. E. (2d) 153 (1939). 

§ 65-232. Nonresident manufacturing, etc., within State. 

If the principal business of a nonresident individual or a foreign corpora- 
tion in this State is manufacturing or if it is any form of collecting, buying, 
assembling or processing goods and materials within this State, such non- 
resident individual or foreign corporation shall make returns and pay annually 
an income tax upon a proportion of its entire net income computed on the 
basis of the arithmetical average of the following two ratios : (a) the ratio 
of the value of the real estate and tangible personal property in this State to 
the value of the entire real estate and tangible personal property, with no de- 
ductions on account of encumbrances thereon and (b) the ratio of the total 
cost of manufacturing, collecting, buying, assembling or processing within 
this State during the income year to the total cost of manufacturing, collect- 
ing, buying, assembling or processing within and without the State during 
such income year. The phrase "cost of manufacturing, collecting, buying, 
assembling or processing" as used in this section shall be interpreted in a 
manner to conform as nearly as may be to the best accounting practice in the 
trade or business and, unless in the opinion of the Commission the peculiar 
circumstances in any case justify a different basis, this phrase shall be gen- 
erally interpreted to include as elements of cost within and without this State 
(a) the total cost of all goods, materials and supplies used in manufacturing, 
assembling or processing, regardless of where purchased; (b) the total wages 
and salaries paid or accrued during the income year in such manufacturing, 
assembling or processing activities and (c) the total overhead or manufac- 
turing burden properly assignable according to good accounting practice to 
such manufacturing, assembling or processing activities but shall not include 
property, privilege, stamp or other taxes. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

309 



§ 65-233 Code of Laws of South Carolina § 65-237 

§ 65-233. Nonresident distributors, etc. 

If the principal business of a nonresident individual or a foreign corporation 
in this State is selling, distributing or dealing in tangible personal property 
within this State such nonresident individual or foreign corporation shall 
make returns and pay annually an income tax upon a proportion of its entire 
net income computed upon the basis of the arithmetical average of (a) the 
ratio of the value of the real estate and tangible personal property in this 
State during the income year to the value of the total real estate and tangible 
property during the income year with no deductions on account of encum- 
brances thereon and (b) the ratio of the total sales made within this State 
during the income year which were principally secured, negotiated or effected 
by employees, agents, consignees, officers or branches of the taxpayer resident 
or located in the State to the total sales made everywhere during such income 
year. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

§ 65-234. Other nonresidents. 

If the principal profits or income of a nonresident individual or foreign cor- 
poration are derived from sources other than manufacturing, collecting, 
buying, assembling or processing or selling, distributing or dealing in tangible 
personal property such nonresident individual or foreign corporation shall 
make returns and pay annually an income tax upon a proportion of its entire 
net income computed on the basis of the ratio of gross receipts in this State 
during the income year to the total gross receipts for such year within and 
without the State. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

§ 65-235. Sale of real estate by nonresident. 

When a nonresident individual or foreign corporation has a gain or loss 
from the sale of real estate located within this State, the gain or loss arising 
from such sale shall be determined in accordance with the provisions of § 65- 
271 and the tax thereon shall be paid at the rate provided by this chapter 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

§ 65-236. Definition of tangible property. 

The term "tangible property" as used in this article includes only the prop- 
erty held or used to produce income which is derived from sources partly 
within and partly without the State. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

§ 65-237. Valuation of tangible property. 

Tangible property shall be taken at its actual value which, in the case of 
property valued or appraised for purpose of inventory, depreciation, depletion 
or other purposes, shall be the highest amount at which it has been so valued 
or appraised and which in other cases shall be deemed to be its book value 
without any deduction for depreciation, depletion or obsolescence in the ab- 
sence of affirmative evidence showing such value to be greater or less than 

310 



§65-238 Taxation § 65-241 

the actual value. The average value during the taxable year or period shall 
be employed. The average value of property as above described at the begin- 
ning and end of the taxable year or period ordinarily may be used, unless by 
reason of material changes during the taxable year or period such average does 
not fairly represent the average for such year or period, in which event the 
average shall be determined upon a monthly or daily basis. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

§ 65-238. Meaning of "entire net income" in case of apportionment. 

When the property ratio provided by this article is involved, the phrase 
"attire net income" shall include only the entire net income from property 
held or used to produce income which is derived from sources partly within and 
partly without this State and for the purposes of apportionment under the 
provisions of this article no gain or loss from the sale of real property shall 
be included in the "entire net income" to be apportioned. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

§ 65-239. Determining income on basis of nonresident's books. 

When a nonresident individual or a foreign corporation maintains books 
of account and records in such manner as to clearly reflect the true net income 
accruing or arising from sources within this State the return may, with the 
approval of the Commission, be based upon such books of account or records 
and the tax paid upon the net income so determined. When the Commission 
finds the books of account and records sufficiently clear, in its opinion, to show 
the true net income arising from sources within this State it may require the 
return to be filed upon such basis and calculate the tax due upon the net in- 
come so determined. 

1942 Code §2451; 1932 Code §2451; 1927 (35) 1; 1932 (37) 1306; 1946 (44) 1491. 

§ 65-240. Limitations of deductions allowed nonresidents. 

In the case of a nonresident individual the deductions allowed in §§ 65-259 
and 65-264 shall be allowed only if, and to the extent that, they are connected 
with income arising from sources within the State and the proper apportion- 
ment and allocation of the deductions with respect to sources of income within 
and without this State shall be determined under rules and regulations pre- 
scribed by the Commission. 

1942 Code §2449; 1932 Code §2449; 1927 (35) 1, 217; 1933 (38) 574; 1934 (38) 1413; 
1936 (39) 1681. 

§ 65-241. Credit to nonresidents for tax paid in home state. 

Whenever a taxpayer other than a resident of the state has become liable 
to income tax to the state in which he resides upon his net income for the 
taxable year derived from sources within this State and subject to taxation 
under this chapter, the Commission shall credit the amount of income tax 
payable by him under this chapter with such proportion of the tax so pay- 
able by him to the state in which he resides as his income subject to taxation 
under this chapter bears to his entire income upon which the tax so payable 

311 



§65-251 Code of Laws of South Carolina §65-253 

to such other state was imposed. But such credit shall be allowed only if the 
laws of such other state (a) grant a substantially similar credit to residents 
of this State subject to income tax under such laws or (b) impose a tax upon 
the personal income of its residents derived from sources in this State and 
exempt from taxation the personal income of residents of this State. No 
credit shall be allowed against the amount of the tax on any income taxable 
under this chapter which is exempt from taxation under the laws of such 
other state. 

1942 Code §2439; 1932 Code §2439; 1930 (36) 1339. 

Article 4. 
Gross and Net Income; Deductions, 

§ 65-251. Gross income defined. 

The words "gross income" mean the income of a taxpayer derived from 
salaries, wages or compensation for personal service, of whatever kind and 
in whatever form paid, or from professions, vocations, trades, business, com- 
merce, sales or dealings in property, whether real or personal, growing out 
of the ownership or use of or interest in such property, and also from interest, 
rent, dividends, securities or the transaction of any business carried on for 
gain or profit and income derived from any source whatsoever. The amount 
of all such items shall be included in the gross income of the income year in 
which received by the taxpayer unless, under the methods of accounting per- 
mitted under this chapter, any such amounts are to be properly accounted for 
as of a different period. 

1942 Code §2444; 1932 Code §2444; 1927 (35) 1. 

§ 65-252. Income of beneficiaries of trusts. 

Every individual taxable under this chapter who is a beneficiary of an 
estate or trust shall include in his gross income the distributive share of the 
net income of the estate or trust received by him or distributable to him dur- 
ing the income year. Unless otherwise provided in the law, will, deed or other 
instrument creating the estate, trust or fiduciary relation, the net income shall 
be deemed to be distributed to the beneficiaries (including the fiduciary as a 
beneficiary, in the case of income accumulated for future distribution) ratably 
in proportion to their respective interests. 

1942 Code §2445; 1932 Code §2445; 1927 (35) 1. 

§ 65-253. Items not included in gross income. 

The words "gross income" do not include the following items which shall 
be exempt from taxation under this chapter: 

(1) The proceeds of life insurance policies and contracts paid upon the 
death of the insured to individual beneficiaries or to the estate of the insurer; 

(2) The amount received by the insured as a return of premium or premiums 
paid by him under life insurance, endowment or annuity contracts, either dur- 
ing the term or at the maturity of the term mentioned in the contract or upon 
surrender of the contract ; 

312 



§ 65-254 Taxation § 65-256 

(3) The value of property acquired by gift, bequest, devise or descent (but 
the income from such property shall be included in gross income) ; 

(4) Interest upon obligations of the United States or its possessions or of 
this State or any political subdivision thereof; 

(5) The rental value of a dwelling house and appurtenances thereof fur- 
nished a minister of the Gospel as part of his compensation; and 

(6) Any amounts received through accident or health insurance or under 
workmen's compensation acts, as compensation for personal injuries or sick- 
ness, plus the amount of any damage received whether by suit or agreement 
on account of such injuries or sickness. 

1942 Code §2444; 1932 Code §2444; 1927 (35) 1; 1942 (42) 1855; 1943 (43) 8S. 

§ 65-254. Compensation for certain military service not included. 

No part of the compensation received by the members of the South Carolina 
National Guard from the State or from the Federal Government or by mem- 
bers of the reserve components of the armed forces of the United States who 
are residents of this State from the Federal Government for services in per- 
forming their duties shall be considered as any part of the income, gross or net, 
of the respective members in computing income taxes payable to the State 
of South Carolina. But the provisions of this section shall not be applicable 
to income derived from tours of active military duty extending beyond the 
customary training periods established for national guard and reserve units. 

1950 (46) 2499. 

§ 65-255. Net income defined. 

The words "net income" as used in this chapter mean the gross income of a 
taxpayer less the deductions allowed by this chapter. 

1942 Code §2443; 1932 Code §2443; 1927 (35) 1. 

§ 65-256. Net income of public service corporations. 

The basis of ascertaining the net taxable income of every corporation en- 
gaged in the business of operating a steam or electric railroad, navigation com- 
pany, waterworks company, light or gas company, power company, express 
service, telephone or telegraph business, sleeping car company or other form 
of public service, whether or not such company is required to keep records 
according to the standard classification of accounting of the Interstate 
Commerce Commission or the Federal Communications Commission, shall 
be the net operating income of such corporation computed in accordance 
with the present standard classification of accounts when their business is 
wholly within the jurisdiction of this State and, when their business is in 
part within and in part without the State, their net income within the juris- 
diction of this State shall be ascertained by taking their gross operating rev- 
enues within this State, including in this gross operating revenues within 
the jurisdiction of this State the equal mileage proportion within the juris- 
diction of this State of their interstate business, and deducting from their 
gross operating revenues the proportionate average of operating expenses 
or operating ratio for their whole business computed in accordance with 

313 



§ 65-257 Code of Laws of South Carolina § 65-258 

the present Interstate Commerce Commission or the Federal Communi- 
cations Commission standard classification of accounts. From the net op- 
erating income thus ascertained shall be deducted uncollectible revenue and 
taxes paid in this State for the income year, other than income taxes, and 
the balance shall be deemed to be their net income taxable under this chapter. 

1942 Code §2440; 1932 Code §2440; 1927 (35) 1, 362; 1930 (36) 1339, 1393; 1943 (43) 
272. 

The words "other form of public serv- owned by a Virginia corporation and all 

ice" as used in this section must be con- the properties of both were leased to a 

strued to relate to and embrace only such third corporation at an annual rental, the 

corporations as are of a similar nature lessee being obligated to make any interest 

or perform services of a similar kind to payment which might be required, the South 

the companies expressly enumerated in the Carolina corporation's allotment of rental 

statute. Cooper River Bridge v. South was actual net income within the meaning of 

Carolina Tax Comm., 182 S. C. 72, 188 S. this section and such corporation was not 

E. 508 (1936). entitled to deduct therefrom interest on its 

Bridge companies and tollgate companies bonded indebtedness which it had accrued 

are not public service corporations within on its books. Carolina, C. & O. Ry. v. 

the meaning of this section. — Cooper River South Carolina Tax Comm., 197 S. C. 529, 

Bridge v. South Carolina Tax Comm., 15 S. E. (2) 764 (1941). 
182 S. C. 72, 188 S. E. 508 (1936). A corporation may not escape its liabil- 

Income from interstate transactions. — ities for income tax merely because it is 

Crescent Mfg. Co. v. South Carolina Tax subsidiary to a parent corporation of an- 

Comtn., 129 S. C. 480, 124 S. E. 761 (1924); other state, which is hence the ultimate 

Western Union Tel. Co. v. Query, 144 S. beneficiary of its income. Carolina, C. & 

C. 234, 142 S. E. 509 (1927). O. Ry. v. South Carolina Tax Comm., 197 

Net income.— Where all the stock and S. C. 529, 15 S. E. (2d) 764 (1941). 
bonds of a South Carolina corporation were 

§ 65-257. Same ; car hire of railroads considered. 

In determining the taxable income of a corporation engaged in the business 
of operating a steam or electric railroad located entirely within the jurisdiction 
of this State the net income shall be increased or decreased to the extent of 
any credit balance received or paid, as the case may be, on account of car 
hire and when any such railroad is located partly within and partly without 
the jurisdiction of this State such net operating income shall be increased or 
decreased to the extent of an equal mileage proportion within the jurisdiction 
of this State of any credit or debit balance received or paid, as the case may be, 
on account of car hire. 

1942 Code §2440; 1932 Code §2440; 1927 (35) 1, 362; 1930 (36) 1339, 1393. 

Application of mileage proportion basis 
as to railroad. — Piedmont & N. Ry. Co. 
v. Query, 56 F. (2d) 172 (1932). 

§ 65-258. Adjusted gross income defined for § 65-260. 

For the purpose of § 65-260 "adjusted gross income" means gross income 
minus : 

(1) Expenses attributable to a trade or business carried on by the tax- 
paver, except when the trade or business is the performance of services as an 
employee ; 

(2) Travel expenses incurred by the taxpayer in performing services as 
an employee if the amount reimbursed is included in gross income ; 

314 



§ 65-259 Taxation § 65-259 

(3) Expenses attributable to rents and royalties; 

(4) Expenses incurred in tbe sale or exchange of property ; and 

(5) Losses arising from the sale or exchange of property. 
1951 (47) 546. 

§65-259. Deductions. 

In computing net income there shall be allowed as deductions: 

(1) All the ordinary and necessary expenses paid or accrued (in case the 
books are kept on the accrual basis) during the income year in carrying on any 
trade or business, including : 

(a) As to individuals, reasonable wages of employees for services actually 
rendered in producing such income ; 

(b) As to partnerships, reasonable wages of employees and a reasonable 
allowance for copartners or members of a firm, for services actually rendered 
in producing such income, the amount of any such salary allowance to be 
included in the personal return of the copartner receiving it ; and 

(c) As to corporations, wages of employees and salaries of officers, if rea- 
sonable in amount, for services actually rendered in producing such income ; 

(2) Rentals or other payments required to be made as a condition to the 
continued use or possession, for the purpose of the trade, of property to which 
the taxpayer has not taken or is not taking title or in which he has no equity ; 

(3) All interest paid during the income year on indebtedness except in- 
terest on obligations contracted for the purchase of non-taxable securities or 
stock ; but dividends on preferred stock shall not be deducted as interest ; 

(4) Taxes for the income year, except taxes on income (other than taxes 
imposed by the United States on income of individuals to an amount not ex- 
ceeding five hundred dollars), inheritance taxes and taxes assessed for a local 
benefit of a kind tending to increase the value of the property assessed; 

(5) All contributions made by corporations to or for the use of: 

(a) The State of South Carolina or any political subdivision thereof, for 
exclusive public purposes; 

(b) Any institution owned, operated, controlled or supported by the 
State or any of its political subdivisions ; 

(c) The American Red Cross ; or 

(d) Any charitable or eleemosynary corporation, trust, community chest 
or foundation organized and operated exclusively for doing religious, char- 
itable, scientific, literary or educational work within South Carolina if no part 
of the earnings or income of the same inures to the benefit of any private share- 
holder or individual and if no part of the activities of the same consist of carry- 
ing on propaganda or otherwise attempting to influence legislation or are ac- 
tivities usually engaged in by chambers of commerce, boards of trade or the 
like; 

But the total deduction to be allowed any corporation by reason of con- 
tributions to the foregoing in any one year shall not exceed five per cent of the 
corporation's net income, as computed without the benefit of the deductions 
allowed by this item (5) ; 

315 



§ 65-259 Code of Laws of South Carolina § 65-259 

(6) Losses sustained during the income year on property used in trade or 
business or of property not connected with trade or business if arising from 
fire, storms, shipwrecks or other casualties or theft and if not compensated for 
by insurance or otherwise ; 

(7) Debts ascertained to be worthless and actually charged off the books of 
the taxpayer within the income year ; 

(8) A reasonable allowance for the depreciation and obsolescence of prop- 
erty used in the trade or business and, in the case of mines and other natural 
deposits, a reasonable allowance for depletion, the basis for computing such 
allowances to be the cost plus any additions and improvements (including, 
in the case of mines and other natural deposits, the cost of development not 
otherwise deducted) and in the case of leases the allowances to be equitably 
apportioned between the lessor and the lessee ; 

(9) A reasonable allowance for depletion of timber, the basis for such 
allowance to be in the case of timber acquired before January 1 1921 the fair 
market price or value thereof as of that date and in all other cases the cost 
thereof; 

(10) The net income of resident individuals and corporations having an 
established business in another state or an investment in property in another 
state from such business or investment, this deduction in no case to extend to 
any part of the income of resident individuals and corporations from personal 
services or mortgages, stocks, bonds, securities or deposits ; 

(11) Contributions or gifts made by individuals within the taxable year to 
corporations or associations operated exclusively for religious, charitable, 
scientific or educational purposes or for the prevention of cruelty to children 
or animals, no part of the net earnings of which inures to the benefit of any 
private stockholder or individual, to an amount not in excess of fifteen per 
cent of the taxpayer's net income as computed without the benefit of this 
item (11); 

(12) All expenses paid during the taxable year, not compensated for by 
insurance or otherwise, for medical care of the taxpayer and any dependent 
of the taxpayer as defined by § 65-225 to the extent that such expenses ex- 
ceed five per cent of the adjusted gross income. The term "medical care," as 
used in this item (12) of this section, shall include amounts paid for the diag- 
nosis, cure, mitigation, treatment or prevention of diseases or for the pur- 
pose of affecting any structure or function of the body, including amounts paid 
for accident or health insurance. 

1942 Code §2449; 1932 Code §2449; 1927 (35) 1, 217; 1933 (38) 574; 1934 (38) 1413; 
1936 (39) 1681; 1943 (43) 170; 1945 (44) 278; 1951 (47) 546. 

Deductions from gross income are not a In computing the cost of timber, it is 
matter of right. They are a matter of legis- not proper to allow the interest paid on 
lative grace, and a taxpayer claiming a de- the purchase price, the cost of incorporating 
duction must bring himself squarely with- the company, the real estate taxes and the 
in the terms of a statute expressly author- premium on a bond executed in lieu of mort- 
izing it. Southern Weaving Co. v. Query, gage. Georgia Cypress Co. v. South Caro- 
206 S. C. 307, 34 S. E. (2d) 51 (1945). lina Tax Comm, 201 S. C. 213, 22 S. E. 

(2d) 419 (1942). 

316 



§ 65-260 Taxation § 65-264 

Legal and other expense in connection Applied, as to subscc. (8), in Read Phos- 

with investigating and perfecting title to phatc Co. v. South Carolina Tax Comm., 
property is a proper item to be included 169 S. C. 314, 168 S. E. 112. (lyJ3). 
in computing cost. Georgia Cypress Co. v. 
South Carolina Tax Comm., 201 S. C. 213, 
22 S. E. (2d) 419 (1942). 

§ 65-260. Optional standard deduction. 

In lieu of all other deductions from adjusted gross income, an individual 
may, at the option of the taxpayer, deduct an amount not exceeding ten per 
cent of his adjusted gross income or the sum of five hundred dollars, which- 
ever is the lesser; provided, that when a husband and wife make a joint re- 
turn the amount deductible may be an amount not exceeding ten per cent of 
their combined adjusted gross income or the sum of one thousand dollars, 
whichever is the lesser. When a husband and wife make separate returns, 
both must exercise the same option. 

1951 (47) 546. 

Cross reference. — For definition of ad- 
justed gross income, see § 65-258. 

§ 65-261. Same; option must be exercised when return filed and is irrevocable. 

The deduction provided for in § 65-260 shall be allowed only if the taxpayer 
elects in his original return to use this deduction in lieu of all other deductions 
and so signifies on his return. The option exercised by the taxpayer in the 
original return shall be irrevocable for the period covered by the return. 

1951 (47) 546. 

§ 65-262. Deduction of United States income tax must be of amount actually 
paid in year. 

The deduction of United States taxes on income of an individual to the ex- 
tent authorized as a deduction by item (4) of § 65-259 shall be claimed on the 
basis of the amount actually paid during the income year, regardless of the 
method of accounting employed by the taxpayer. 

1951 (47) 546. 

§ 65-263. Contributions of public service corporations. 

In the case of corporations as to which the basis for ascertaining net income 
is prescribed by § 65-256, net operating income, operating expenses and operat- 
ing ratio shall be revised and adjusted for income tax purposes to the extent 
necessary to reflect the deductions allowed by item (5) of § 65-259. 

1945 (44) 278. 

§ 65-264. Amortization of defense facilities. 

Every taxpayer to which has been or may be issued a certificate of neces- 
sity in connection with national defense as contemplated by Section 124 of the 
Internal Revenue Code of the United States (Second Revenue Act 1940, Sec- 
tion 302, as amended by Public No. 3, January 31 1941) may, for the pur- 
pose of computing its liability under the income tax law of this State, avail 
itself of an amortization deduction in respect to the property covered by such 

317 



§ 65-265 Code of Laws of South Carolina § 65-273 

certificate to the same extent that such deduction is permitted and availed of 
under the Federal Income Tax Laws. In the case of railroad and other public 
service corporations as to which the basis for ascertaining net income is pre- 
scribed by § 65-256, net operating income, operating expenses and operating 
ratio arrived at as otherwise provided by law shall be revised and adjusted 
for income tax purposes to the extent necessary to reflect the amortization 
deduction granted in this section. 

1942 Code §2444; 1941 (42) 152; 1943 (43) 88. 

§ 65-265. Items not deductible. 

In computing net income no deduction shall in any case be allowed in re- 
spect of: 

(1) Personal, living, or family expenses ; 

(2) Any amount paid out for new buildings or for permanent improve- 
ments or betterments made to increase the value of any property or estate ; 

(3) Any amount of expenses of restoring property for which an allowance 
is or has been made ; or 

(4) Premiums paid on any life insurance policy. 
1942 Code § 2450; 1932 Code § 2450; 1927 (35) 1. 

Article 5. 
Gain or Loss and Basis Therefor. 

§ 65-271. Basis for determination of gain or loss. 

For the purpose of ascertaining the gain or loss from the sale or other dis- 
position of property, real, personal or mixed, the basis shall be, in the case of 
property acquired before January 1 1921, the fair market price or value of such 
property as of that date and in all other cases the cost thereof except that in 
the case of property which was included in the last preceding annual inven- 
tory used in determining net income in a return under this chapter such in- 
ventory value shall be taken in lieu of cost or market value. 

1942 Code §2446; 1932 Code §2446; 1927 (35) 1. 

§ 65-272. No gain or loss in 1951 or 1952 on certain property sold to or con- 
demned by United States. 

No gain or loss shall be recognized under the provisions of § 65-271 upon the 
sale under condemnation or threat of condemnation of property when such 
property was or is purchased or seized by the United States during the period 
commencing January 1 1951 and ending December 31 1952 for use as a part of 
the site of the Savannah River Plant of the Atomic Energy Commission. 

1951 (47) 546. 

§ 65-273. Gain or loss on exchanges generally. 

When property is exchanged, whether or not of a like nature, the gain or 
loss shall be the difference between the cost, or the value on January 1 1921 
if acquired prior to that date, of the property exchanged and the value of the 

318 



§ 65-274 Taxation § 65-281 

property received, whether bonds, stocks, securities or other tangible or in- 
tangible property. 

1942 Code §2447; 1932 Code §2447; 1927 (35) 1; 1928 (35) 1159. 

§ 65-274. No gain or loss on corporate organizations generally. 

In the case of an organization of a corporation, the stock or securities 
received shall be considered to take the place of property transferred thereto 
and no gain or loss shall be deemed to arise therefrom. 

1942 Code §2447; 1932 Code §2447; 1927 (35) 1; 1928 (33) 1159. 

§ 65-275. No gain or loss on corporate reorganizations generally. 

In a reorganization, consolidation or merger the exchange of stock or prop- 
erty for stock of a corporation a party to the reorganization, consolidation or 
merger shall not be deemed to result in gain or loss. 

1942 Code §2447; 1932 Code §2447; 1927 (35) 1; 1928 (35) 1159. 

§ 65-276. Basis for gain or loss on certain corporate organizations, mergers, 
etc. 

When in connection with the organization, merger or consolidation of a 
corporation a stockholder receives, in place of stock or securities owned by 
him, new stock or securities, the basis for computing the gain or loss, if any, 
shall be, in case the stock or securities owned were acquired before January 1 
1921, the fair market price or value thereof as of that date and in all other 
cases the cost thereof. 

1942 Code §2447; 1932 Code §2447; 1927 (35) 1; 1928 (35) 1159. 

§ 65-277. Gain or loss on corporate liquidations. 

The final distribution to the taxpayer of the assets of a corporation shall be 
treated as a sale of the stock or securities of the corporation owned by him 
and the gain or loss shall be computed accordingly. 

1942 Code § 2446; 1932 Code § 2446; 1927 (35) 1. 

Article 6. 

Accounting Methods and Periods. 
§65-281. Methods. 

The net income of a taxpayer shall be computed in accordance with the 
method of accounting regularly employed in keeping the books of such tax- 
payer. But if such method does not clearly reflect the income, the computa- 
tion shall be made in accordance with such method as in the opinion of the 
Commission does clearly reflect the income. 

1942 Code §2445; 1932 Code §2445; 1927 (35) 1. 

Income, as used in a tax statute, is to be another. Southern Weaving Co. v. Query, 

taken in its ordinary sense of gain or profit. 206 S. C. 307, 34 S. E. (2d) 51 (1945). 

Southern Weaving Co. v. Query, 206 S. C. War contract profits. — Where a company, 

307, 34 S. E. (2d) 51 (1945). operating under a war contract, had a tenta- 

The law does not contemplate that that tive net profit of over $500,000 but after 

is income of the taxpayer which belongs to renegotiation with the government returned 

319 



§ 65-282 Code of Laws of South Carolina § 65-285 

$350,000, sought to have its taxes reduced amount of gross income where the Cora- 

accordingly, the Tax Commission holding mission contended that it couldn't be de- 

that it could not reduce the amount, it was ducted and must be taxed. Southern Weav- 

held that such income returned was not ing Co. v. Query, 206 S. C. 307, 34 S. E. 

taxable as net income and was not a deduc- (2d) 51 (1945). 
tion from gross income as it related to the 

§65-282. Fiscal year. 

Taxpayers whose accounting period of twelve months ends as of the last 
day of some month other than December and whose books are kept according- 
ly may, with the approval of the Commission and subject to such rules and 
regulations as it may establish, return their net income under this chapter on 
the basis of such fiscal year in lieu of that of the calendar year. 

1942 Code §2445; 1932 Code §2445; 1927 (35) 1. 

§ 65-283. Change from fiscal to calendar year and vice versa. 

A taxpayer may, with the approval of the Commission and under such regu- 
lations as it may prescribe, change his income year from a fiscal year to a 
calendar year or vice versa, in which case his net income shall be computed 
upon the basis of such new income year. Such approval must be obtained from 
the Commission at least thirty days prior to the end of such income year. 

1942 Code §2445; 1932 Code §2445; 1927 (35) 1. 

§ 65-284. When inventories must be taken. 

Whenever in the opinion of the Commission it is necessary in order clearly 
to determine the income of any taxpayer, inventories shall be taken by such 
taxpayer upon such basis as the Commission may prescribe, conforming as 
nearly as may be to the best accounting practice in the trade or business and 
most clearly reflecting the income. 

1942 Code §2448; 1932 Code §2448; 1927 (35) 1. 

§ 65-285. Determination of income in case of arbitrary shifting. 

When the Commission has reason to believe that any taxpayer so conducts 
the trade or business as, directly or indirectly, to distort his true net income 
and the net income properly attributable to the State by the arbitrary shifting 
of income, through price fixing, charges for service or otherwise, whereby the 
net income is arbitrarily assigned to one or another unit in a group of taxpayers 
carrying on business under a substantially common control, it may require such 
facts as it deems necessary for the proper computation of the entire net income 
and the net income properly attributable to the State and in determining the 
same the Commission shall have regard to the fair profits which would normal- 
ly arise from the conduct of the trade or business. 

1942 Code §2454; 1932 Code §2454; 1927 (35) 1. 



320 



§ 65-291 Taxation § 65-295 

Article 7. 

Returns. 

§ 65-291. Who required to make returns. 

Every resident or nonresident having' a net income during the income year 
taxable in this State of one thousand dollars and over, if single or if married 
and not living with husband or wife, or having a net income for the income 
year of one thousand eight hundred dollars or over, if married and living with 
husband or wife, and every corporation except those specifically exempted 
shall make a return stating specifically the items of gross income and the 
deductions and exemptions allowed by this chapter and such other facts as 
the Commission may require for the purpose of making any computation re- 
quired by this chapter. When the Commission has reason to believe that any 
person or corporation is liable for tax under this chapter it may require any 
such person or corporation to make a return. If a husband or wife living 
together have an aggregate net income of one thousand eight hundred dollars 
or over each shall make a return, unless the income of each is included in a 
single joint return. 

1942 Code §2453; 1932 Code §2453; 1927 (35) 1; 1930 (36) 1338; 1933 (38) 573; 1943 
(43) 52. 

§ 65-292. Return when individual unable to make it. 

If an individual taxpayer is unable to make his own return the return shall 
be made by a duly authorized agent or by a guardian or other person charged 
with the conduct of the business of the taxpayer. 

1942 Code §2453; 1932 Code §2453; 1927 (35) 1; 1930 (36) 1338; 1933 (38) 573. 

§ 65-293. Return of deceased individual. 

The return of an individual who, while living, was carrying on a trade or 
business in the State during the income year and who has died before making 
the return shall be made in his name and behalf by the administrator or execu- 
tor of his estate and the tax shall be levied upon and collected from his estate. 

1942 Code §2453; 1932 Code §2453; 1927 (35) 1; 1930 (36) 133S; 1933 (38) 573. 

§ 65-294. Execution of corporate return. 

The return of a corporation shall be signed by the president or other prin- 
cipal officer and by the treasurer or assistant treasurer. 

1942 Code §2453; 1932 Code §2453; 1927 (35) 1; 1930 (36) 1338; 1933 (3S) 573; 1943 
(43) 52. 

§65-295. Return of partnership. 

The return of a partnership shall be made by any one of the partners and 
shall show the net income of the partnership and the amount of such income 
allocated to each partner. 

1942 Code §2453; 1932 Code §2453; 1927 (35) 1; 1930 (36) 1338; 1933 (38) 573. 
[6 SC Code]— 2] 321 



§ 65-296 Code of Laws of South Carolina § 65-299 

§ 65-296. Return of estate or trust. 

The return of the net income of a trade or business carried on by an estate 
or trust shall be made by the fiduciary and, under such regulations as the Com- 
mission may prescribe, may be made by one of two or more joint fiduciaries. 
Such return shall show the net income of such estate or trust and the dis- 
tribution of such income to the beneficiaries. 

1942 Code §2453; 1932 Code §2453; 1927 (35) 1; 1930 (36) 1338; 1933 (38) 573. 

§ 65-297. When consolidated returns permitted. 

Any taxpayer capable of exercising, directly or indirectly, substantially the 
entire control of the business of another taxpayer, either by ownership or 
control of substantially the entire capital stock (if a corporation) of such other 
taxpayer or otherwise, may, under regulations prescribed by the Commission, 
be permitted to make a consolidated return, showing the consolidated net 
income and such other information as the Commission may require in order 
to compute the net income properly attributable to the State and to impose 
the tax upon the taxpayers concerned. 

The Commission may also permit the filing of a consolidated return when 
substantially the entire control of two or more taxpayers liable to taxation 
under this chapter is exercised by the same interest. 

1942 Code §2454; 1932 Code §2454; 1927 (35) 1. 

§ 65-298. Returns of less than year when income year changed. 

If a taxpayer, with the approval of the Commission, changes the income year 
on the basis of which his net income is computed, he shall, at such time and in 
such manner as the Commission may prescribe, make a separate return of his 
net income received during the period intervening between the end of his 
former income year and the beginning of the new income year, in which 
return the specific deduction allowed in this chapter shall be reduced to an 
amount which bears the same ratio to the full deduction thus allowed as the 
number of months in such period bears to twelve months. 

1942 Code §2455; 1932 Code §2455; 1927 (35) 1. 

§ 65-299. Information returns. 

All individuals, corporations and partnerships, in whatever capacity acting, 
including lessees and mortgagors of real or personal property, fiduciaries and 
employers making payment to another individual, corporation or partnership 
of interest, rent, dividends, salaries, wages, emoluments or other fixed or de- 
termined gains, profits or income of one thousand dollars or more in any tax- 
able year and, in the case of such payments made by this State or any sub- 
division thereof, the officers or employees of this State or any subdivision there- 
of having information as to such payments and required to make returns in 
regard thereto shall make a true and accurate return to the Commission under 
such regulations as the Commission may prescribe, setting forth the amount 
of such gains, profits and income and the name and address of the recipient 
thereof. 

1942 Code §2452; 1932 Code §2452; 1927 (35) 1; 1934 (38) 1572; 1940 (41) 1729. 

322 [6SCCode] 



§65-300 Taxation §65-304 

§ 65-300. Commission to furnish blank returns. 

The Commission shall cause to be prepared blank forms for the returns to 
be furnished upon application, but failure to receive or secure the form shall 
not relieve any taxpayer from the obligation of making a return. 

1942 Code §2456; 1932 Code §2456; 1927 (35) 1. 

§ 65-301. Use of form of Federal returns. 

The Commission shall use as far as possible and practicable for filing returns 
for income tax blanks as used by the United States down to the net income 
part of such blanks. 

1942 Code §2479; 1932 Code §2479; 1927 (35) 1. 

It is the duty of the Tax Commission to South Carolina Tax Comm., 183 S. C. 38, 
furnish the taxpayers with blank forms on 190 S. E. 249 (1937). 
which to make their returns. Iladden v. 

§ 65-302. Returns need not be sworn to but are subject to penalties of perjury. 
It shall not be necessary that such returns be sworn to but any person who 
shall knowingly make any false statement in a return signed by him shall be 
guilty of a felony and punished as provided for perjury. 

1943 (43) 52. 

§ 65-303. Time and place of filing returns. 

Returns shall be in such form as the Commission may from time to time 
prescribe and shall be filed with the Commission on or before the fifteenth day 
of the third month next after the preceding income year. In case of sickness, 
absence or other disability or whenever in its judgment good cause exists the 
Commission may allow further time for filing returns. 

1942 Code §2456; 1932 Code §2456; 1927 (35) 1. 

§ 65-304. Failure to file returns ; supplementary returns. 

If the Commission shall be of the opinion that any taxpayer has failed to file 
a return or to include in a return filed, either intentionally or through error, 
items of taxable income, it may require from such taxpayer a return or a 
supplementary return, in such form as it shall prescribe, of all items of in- 
come which the taxpayer received during the year for which the return is 
made, whether or not taxable under the provisions of this chapter. If from 
a supplementary return or otherwise the Commission finds that any item of 
income taxable under this chapter has been omitted from the original return, 
it may require the item so omitted to be disclosed to it, under oath of the 
taxpayer, and to be added to the original return. Such supplementary return 
and the correction of the original return shall not relieve the taxpayer from 
any of the penalties to which he may be liable under any provisions of this 
chapter. The Commission may proceed under the provisions of § 65-322 
whether or not it requires a return or a supplementary return under this section. 

1942 Code §2457; 1932 Code §2437; 1927 (35) 1. 

323 



§ 65-305 Code of Laws of South Carolina § 65-308 

§ 65-305. Mandamus to require filing of return. 

If any taxpayer fails to file a return within sixty days of the time prescribed 
by this chapter, any judge of the circuit court, upon petition of the Commission, 
shall issue a writ of mandamus requiring such person to file a return. The 
order of notice upon the petition shall be returnable not later than ten days 
after the filing of the petition. The petition shall be heard and determined on 
the return day or on such day thereafter as the court shall fix, having regard 
to the speediest possible determination of the case consistent with the rights 
of the parties. The judgment shall include costs in favor of the prevailing 
party. All writs and processes may be issued from the clerk's office in any 
county and, except as above provided, shall be returnable as the court shall 
order. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§ 65-306. Determination of income by Commission. 

If any taxpayer who has failed to file a return or has filed an incorrect or 
insufficient return and has been notified by the Commission of his delinquency 
refuses or neglects within twenty days after such notice to file a proper return 
or files a fraudulent return, the Commission shall determine the income of such 
taxpayer according to its best information and belief and assess it at not more 
than double the amount so determined. The Commission may in its discre- 
tion allow further time for the filing of a return in such case. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§ 65-307. Secrecy of reports and returns. 

Except in accordance with proper judicial order or as otherwise provided 
by law it shall be unlawful for the members of the Commission or any deputy, 
agent, clerk or other officer or employee thereof to divulge or make known in 
any manner the amount of income or any particulars set forth or disclosed in 
any report or return required under this chapter. Nothing in this section shall 
be construed to prohibit the publication of statistics so classified as to prevent 
the identification of particular reports or returns and the items thereof or 
the inspection by the Attorney General or other legal representative of the 
State of the report or return of any taxpayer who shall bring action to set 
aside or review the tax based thereon or against whom an action or proceeding 
has been instituted to recover any tax or any penalty imposed by this chapter. 
Reports and returns shall be preserved for five years and thereafter until the 
Commission orders them to be destroyed. 

Any offense against this section shall be punished by a fine of not exceeding 
one thousand dollars or by imprisonment not exceeding one year or both, at 
the discretion of the court, and if the offender be an officer or employee of the 
State he shall be dismissed from office and be incapable of holding any public 
office in this State for a period of five years thereafter. 
' 1942 Code §2475; 1932 Code §2475; 1927 (35) 1. 

§65-308. Same; exceptions. 

Notwithstanding the provisions of § 65-307, the Commission may permit 

324 



§65-309 Taxation §65-321 

the Commissioner of Internal Revenue of the United States, the proper officer 
of any state imposing an income tax similar to that imposed hy this chapter or 
the authorized representative of either such officer to inspect the income tax 
returns of any taxpayer or may furnish to such officer or his authorized repre- 
sentative an ahstract of the return of income of any taxpayer or supply him 
with information concerning any item of income contained in any return or 
disclosed by the report of any investigation of the income or return of income 
of any taxpayer. But such permission shall be granted or such information 
furnished to such officer or his representative only if the statutes of the United 
States or of such other state, as the case may be, grant substantially similar 
privileges to the proper officer of this State charged with the administration 
of this chapter. 

1942 Code §2475; 1932 Code §2475; 1927 (35) 1. 

§ 65-309. Oaths and acknowledgments. 

The members of the Commission and such officers as it may designate may 
administer oaths to any person or take acknowledgments of any person in 
respect of any return or report required by this chapter or the rules and regu- 
lations of the Commission. 

1942 Code §2473; 1932 Code §2473; 1927 (35) 1. 

Article 8. 

Examinations, Deficiencies and Illegal or Excessive Assessments. 

§ 65-321. Examination of returns; interest and penalties on deficiencies. 

As soon as practicable after each return is filed, the Commission shall ex- 
amine it and compute the tax and the amount so computed by the Commission 
shall be the tax. If the tax found due shall be greater than the amount there- 
tofore paid, the excess shall be paid to the Commission within ten days after 
notice of the amount shall be mailed by the Commission. 

If additional tax is found to be due upon the examination of an income tax 
return and the return has been made in good faith and the understatement 
of the tax was not due to any fault of the taxpayer there shall be no penalty 
added because of such understatement, but interest shall be added to the 
amount of the deficiency at the rate of one-half of one per cent for each month 
or fraction of a month from the date the tax was originally due until the date 
the deficiency is paid. 

If the understatement is due to negligence on the part of the taxpayer, but 
without intent to defraud, there shall be added to the amount of the de- 
ficiency five per cent thereof and in addition interest at the rate of one per 
cent per month or fraction of a month. 

If the understatement is false or fraudulent, with intent to evade the tax, 
the tax on the additional income discovered to be taxable shall be doubled and 
one per cent per month or fraction of a month on such doubled tax shall be 
added. 

The interest provided for in this section shall in all cases be computed 
from the date the tax was originally due to the date of payment. 

325 



§ 65-322 Code of Laws of South Carolina § 65-323 

If the amount of tax found due as computed shall be less than the amount 
theretofore paid, the excess shall be ordered refunded by the Commission. 
19-42 Code §2459; 1932 Code §2459; 1927 (35) 1, 217. 

§ 65-322. Assessment of additional taxes. 

If the Commission discovers from the examination of the return or other- 
wise that the income of any taxpayer, or any portion thereof, has not been 
assessed, it may, at any time within five years after the time when the return 
was due, assess such income and give notice to the taxpayer of such assessment 
and such taxpayer shall thereupon have an opportunity within thirty days 
to confer with the Commission as to the proposed assessment. The limitation 
of five years to the assessment of such tax or additional tax shall not apply 
to the assessment of additional taxes upon fraudulent returns. After the ex- 
piration of thirty days from such notification the Commission shall assess 
the income of such taxpayer or any portion thereof which it believes has not 
theretofore been assessed and shall give notice to the taxpayer so assessed 
of the amount of the tax and interest and penalties, if any, and the amount 
thereof shall be due and payable within ten days from the date of such notice. 
The provisions of this chapter with respect to revision and appeal shall apply 
to a tax so assessed. No additional tax amounting to less than fifty cents 
shall be assessed. 

1942 Code §2460; 1932 Code §2460; 1927 (35) 1; 1932 (37) 1311. 

§ 65-323. Refund of taxes illegally collected. 

If the Commission discovers from the examination of the return or otherwise 
that the income tax, penalty or interest paid by any taxpayer is in excess of 
the amount legally due, the Commission may issue to the taxpayer its voucher 
to the Comptroller General for the refund of such illegally collected income tax, 
penalty or interest together with the interest provided for in § 65-330. Upon 
receipt of such voucher, properly executed and endorsed, the Comptroller 
General shall issue his warrant to the State Treasurer for the payment to the 
taxpayer of such refund, out of any income tax funds in his possession or out 
of any such funds that may come into his possession. 

The Commission shall keep in its files a duplicate of each such voucher and 
also a statement which shall set forth the reasons why such refund shall have 
been ordered. 

This section shall be in addition to any remedies for the abatement or refund 
of taxes that may otherwise be provided by law. 

1942 Code §2461; 1932 Code §2461; 1929 (36) 1048. 

Cross reference. — As to State's right to The Tax Commission's authority to order 

sue and be sued, see § 14-1. a refund is limited by the terms of this sec- 

This section does not create a plain min- tion in its scope, and it confers the power 
isterial duty on the part of the Tax Com- and authority upon the Tax Commission 
mission to refund any and all overpaid in- to refund illegally collected income tax, pen- 
come taxes assessed and collected against alty or interest, when it discovers from the 
taxpayers prior to the passage of this law. examination of the return or otherwise that 
without regard to the legality or equity of the amount paid by any taxpayer is in 
such claims. Argent Lbr. Co. v. Query, 178 excess of the amount legally due; this al- 
S. C. 1, 182 S. E. 93 (1935). lowance of such a refund is not made obliga- 

326 



§ 65-324 Taxation § 65-326 

lory, and no provision for its enforcement authority. Argent Lbr. Co. v. Query, 178 
by the taxpayer by suit against the State, S. C. 1, 182 S. E. 93 (1935). 
without its consent, is contained in this sec- State must consent to suit against com- 
tion. Argent Lbr. Co. v. Query, 178 S. C. missions. — A suit by a taxpayer against the 
1. 182 S. E. 93 (1935). Tax Commission for the recovery of inter- 
Section does not authorize taxpayer's suit est on refunded taxes, is a suit against the 
for refund. — Under the terms of this sec- State, and may not be instituted without 
tion the Tax Commission is clothed with the consent of the State. Monarch Mills 
the power and authority to make such v. South Carolina Tax Comm., 149 S. C. 
refunds for valid reasons, but no corre- 219, 146 S. E. 870 (1929). 
sponding right is conferred upon the tax- For additional related case, see South- 
payer to compel by suit the exercise of this ern Ry. Co. v. Query, 21 F. (2d) 33i (1927). 

§ 65-324. Examination of books, etc. 

The Commission, for the purpose of ascertaining the correctness of any re- 
turn or for the purpose of making an estimate of the taxable income of any 
taxpayer, may examine or cause to be examined by any agent or representa- 
tive designated by it for that purpose any books, papers, records or memoranda 
hearing upon the matters required to be included in the return. 

1942 Code §2471: 1932 Code §2471; 1927 (35) 1. 

§ 65-325. Summons to produce books, etc. 

When any person who is required to make a return under this chapter (a) 
fails so to do at the time required, (b) delivers any return which, in the opin- 
ion of the Commission is erroneous or (c) refuses to allow any regularly au- 
thorized agent of the Commission to examine his books and records, the 
Commission may summons (a) such person, (b) any other person having 
possession, care or custody of books of account containing entries relating to 
the business of such person or (c) any other person it may deem proper, to 
appear before the Commission and produce such books at a time and place 
named in the summons and to give testimony and answer questions under 
oath respecting any item of income liable to tax on the return thereof. Such 
summons shall in all cases be served by an authorized agent of the Com- 
mission by delivering an attested copy to such person in hand or leaving such 
copy at such person's last or usual place of abode, allowing such person one 
day for each twenty-five miles he may be required to travel computed from 
the place of service to the place of examination. When the summons requires 
the production of books and returns it shall be sufficient if such books are 
described with reasonable certainty. 

1942 Code §2471; 1932 Code §2471; 1927 (35) 1. 

§ 65-326. Enforcement of summons by court. 

Whenever any person summoned under the provisions of § 65-325 neglects 
or refuses to obey such summons the Commission may apply to any circuit 
judge for an attachment against him for contempt. Any such judge shall hear 
such application and, if satisfactory proof is made, shall issue an attachment 
directed to the sheriff of the county in which the person resides for the arrest 
of such person. Upon such person being brought before him such judge shall 
proceed to a hearing of the case and upon such hearing the judge may make 
such order as he shall deem proper, not inconsistent with existing laws for 

327 



§ 65-327 Code of Laws of South Carolina § 65-341 

the punishment of contempt, to enforce obedience to the requirements of the 
summons and to punish such person for his default or disobedience. 
1942 Code §2471; 1932 Code §2471; 1927 (35) 1. 

§ 65-327. Revision by Commission on application of taxpayer. 

A taxpayer may apply to the Commission for revision of the tax assessed 
against him, at any time within one year from the time of the filing of the 
return or from the date of the notice of the assessment of any additional tax. 
The Commission shall grant a hearing thereon and if, upon such hearing, it 
shall determine that the tax is excessive or incorrect it shall re-settle it ac- 
cordingly. The Commission shall notify the taxpayer of its determination and 
shall refund to the taxpayer the amount, if any, paid in excess of the tax found 
by it to be due. 

1942 Code §2467; 1932 Code §2467; 1927 (35) 1. 

Quoted in Argent Lbr. Co. v. Query, 178 Cited in Southern Ry. Co. v. Query, 21 

S. C. 1, 182 S. E. 93 (1935). F. (2d) 333 (1927). 

§65-328. Blank. 
§65-329. Blank. 

§ 65-330. Interest on refunds or credits. 

Upon the allowance of a credit or refund of any tax, penalty or interest 
erroneously, improperly or illegally paid, interest shall be allowed and paid 
on the amount of such credit or refund at the rate of one-half of one per cent 
per month from the date such tax, penalty or interest was paid to the date the 
order for refund or credit is issued. 

1942 Code §2461; 1932 Code §2461; 1929 (36) 1048. 

Collection of interest. — See Western Un- Carolina Tax Comm., 149 S. C. 219, 146 
ion Tel. Co. v. Query, 144 S. C. 234, 142 S. E. 870 (1929). 
S. E. 509 (1927); Monarch Mills v. South 

Article 9. 

Payment, Collection and Use of Tax. 

§ 65-341. When tax payable ; installment payments. 

The full amount of the tax payable as shown on the face of the return shall 
be paid to the Commission at the office where the return is filed, at the time 
fixed by law for filing the return. If the taxpayer so elects he may pay the 
tax in four equal installments, in which case the first installment shall be paid 
on the date prescribed for the payment of the tax by the taxpayer, the second 
installment shall be paid on the fifteenth day of the third month, the third in- 
stallment on the fifteenth day of the sixth month and the fourth installment 
on the fifteenth day of the ninth month after such date. If any installment 
is not paid on or before the date fixed for its payment, the entire amount of 
unpaid tax, interest and penalty shall become due and payable. If the tax- 
payer is granted an extension of time in which to file his income tax return, 

328 



§ 65-342 Taxation § 65-344 

the interest on deferred payments shall in no instance exceed six per cent per 
annum on such deferred payments from the time the return is due to be filed 
until the tax due thereon is paid. 

The provisions of this section shall not apply to the payment of additional 
taxes assessed by the Commission, such additional taxes to be paid as other- 
wise required by law. 

1942 Code §2458; 1932 Code §2458; 1927 (35) 1; 1946 (44) 1491. 

§ 65-342. Payment by uncertified check. 

The tax may be paid with an uncertified check, during such time and under 
such regulations as the Commission shall prescribe, but if a check so received 
is not paid by the bank on which it is drawn the taxpayer by whom such check 
is tendered shall remain liable for the payment of the tax and for all legal 
penalties as if such check had not been tendered. 

1942 Code §2458; 1932 Code §2458; 1927 (35) 1; 1946 (44) 1491. 

§ 65-343. Jeopardy assessments and collections. 

If the Commission finds that the assessment or collection of a tax or a de- 
ficiency for any year, current or past, will be jeopardized in whole or in part 
by delay, the Commission may mail or issue a notice of such finding to the 
taxpayer together with a demand for immediate payment of the tax or the 
deficiency declared to be in jeopardy, including interest, penalties and addi- 
tions thereto. In the case of the tax for a current period, the Commission may 
declare the taxable period of the taxpayer immediately terminated and shall 
cause notice of such finding and declaration to be mailed or issued to the tax- 
payer, together with a demand for immediate payment of the tax based on 
the period declared terminated and such tax shall be immediately due and pay- 
able whether or not the time otherwise allowed by law for filing the return 
and paying the tax has expired. Any such assessment provided for in this 
section shall be immediately due and payable and proceedings for collection 
shall commence at once and, if such tax is not paid upon demand of the Com- 
mission, the Commission shall forthwith issue a warrant of distraint against 
the property of the taxpayer or, in its discretion, may require the taxpayer to 
file such indemnity bond as in the judgment of the Commission may be suf- 
ficient to protect the interest of the State. 

1942 Code §2458; 1932 Code §2458; 1927 (35) 1; 1946 (44) 1491. 

§ 65-344. Issue of warrant for collection. 

If any tax, interest or penalty imposed by this chapter remain due and un- 
paid for a period of ten days, the Commission shall issue a warrant under 
its hand and official seal directed to the sheriff or tax collector of any county 
commanding him to levy upon and sell the real and personal property of the 
taxpayer found within his county for the payment of the amount thereof with 
added penalties, interest and the cost of executing the warrant and to return 
such warrant to the Commission and pay to it the money collected by virtue 

329 



§ 65-345 Code of Laws of South Carolina § 65-349 

thereof by a time to be therein specified, not more than sixty days after the 
receipt of the warrant. 

1942 Code §2462; 1932 Code §2462; 1927 (35) 1; 1946 (44) 1491. 

Cited in State v. Wilder, 198 S. C. 390, 
18 S. E. (2d) 324 (1941). 

§ 65-345. Docketing of warrant and lien thereof. 

Immediately upon receipt of the warrant, the sheriff or tax collector shall 
file with the clerk of court of his county a copy thereof and thereupon the 
clerk of court shall enter in the judgment docket, in the column for judgment 
debtors, the name of the taxpayer mentioned in the warrant and in appro- 
priate columns the amount of the tax or portion thereof and penalties for which 
the warrant is issued and the date when such copy is filed, and shall index the 
warrant upon the index of judgments. Thereupon the amount of such warrant 
so docketed shall become a lien upon the title to and interest in real property 
or chattels real of the taxpayer against whom it is issued in the same manner 
as a judgment duly docketed in the office of said clerk. 

1942 Code §2462; 1932 Code §2462; 1927 (35) 1; 1946 (44) 1491. 

§ 65-346. Collection of warrant ; fees of officers. 

The sheriff or tax collector shall proceed upon the warrant in all respects 
with like effect and in the same manner prescribed by law in respect to execu- 
tions issued against property upon judgments of a court of record. The sheriff 
or tax collector and the clerk of court shall be entitled to the same fees for 
service in executing and recording the warrant as prescribed by law in respect 
to the executions issued against property upon judgments of a court of record, 
to be collected in the same manner. 

1942 Code §2462; 1932 Code §2462; 1927 (35) 1; 1946 (44) 1491. 

§ 65-347. Collection when warrant not satisfied. 

If a warrant be returned not satisfied in full, the Commission shall have the 
same remedies to enforce the claim for taxes against the taxpayer as if the 
people of the State had recovered judgment against the taxpayer for the 
amount of the tax. 

1942 Code §2462; 1932 Code §2462; 1927 (35) 1; 1946 (44) 1491. 

§ 65-348. Tax a debt. 

Every tax imposed by this chapter and all increases, interest and penalties 
thereon shall become, from the time it is due and payable, a personal debt 
from the person liable to pay it to the State. 

1942 Code §2463; 1932 Code §2463; 1927 (35) 1. 

§ 65-349. Action for recovery of taxes. 

Action may be brought at any time by the Attorney General, in the name 
of the State, to recover the amount of any taxes, penalties and interest due 
under this chapter. 

1942 Code §2464; 1932 Code §2464; 1927 (35) 1. 

350 



§ 65-350 Taxation § 65-362 

§ 65-350. Compromises by Commission. 

The Commission may compromise any civil or criminal case arising under 
the provisions of this chapter instead of commencing suit thereon and may 
compromise any such case with the consent of the Attorney General after 
suit thereon has been commenced. When any case is compromised the Com- 
mission shall keep on file in its office the reasons for such settlement, together 
with a statement of the amount of tax assessed, the amount of additional tax 
or penalty or interest imposed by law in consequence of the neglect or de- 
linquency of the person against whom the tax is assessed and the amount 
actually paid in accordance with the terms of the compromise. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§65-351. Blank. 

§ 65-352. Allocation of income tax revenue. 

All revenue from the income tax shall be allocable to the revenues and ap- 
propriations for the fiscal year in which the first installment thereof comes due 
and the State Treasurer may borrow in anticipation of all deferred installments 
if such revenues be necessary to pa}' appropriations. 

1942 Code §2458; 1932 Code §2458; 1927 (35) 1; 1946 (44) 1491. 

§ 65-353. Expenses incurred under certain sections. 

Out of the revenue and interest derived under the provisions of this chapter 
the Commission may expend so much as is necessary to defray the additional 
expenses incurred in the administration and enforcement of §§ 65-341 to 65- 
343 and 65-352. All such expenditures shall be made upon the approval of the 
State Budget and Control Board. 

1942 Code §2458; 1932 Code §2458; 1927 (35) 1; 1946 (44) 1491. 

Article 10. 
Penalties. 

§ 65-361. Increase of tax for failure to file return or pay tax generally. 

If any taxpayer, without intent to evade any tax imposed by this article, 
shall fail to file a return of income or to pay a tax, if one is due, at the time 
required by or under the provisions of this chapter, but shall later voluntarily 
file a correct return of income and pay the tax due, there shall be added to the 
tax an additional amount equal to five per cent thereof and an additional one 
per cent for each month or fraction of a month during which the tax remains 
unpaid. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§ 65-362. Increase of tax for intentional failure to file or pay. 

If any taxpayer fails voluntarily to file a return of income or to pay a tax, 
if one is due, within sixty days of the time required by or under the provisions 
of this chapter, the tax shall be increased by twenty-five per cent. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

331 



§ 65-363 Code of Laws of South Carolina § 65-367 

§ 65-363. Additional penalty for nonfraudulent failure to file, pay, etc. 

Any person who, without fraudulent intent, fails to pay any tax, to make, 
render, sign or verify any return or to supply any information within the time 
required by or under the provisions of this chapter shall be liable to a penalty 
of not more than one thousand dollars, to be recovered by the Attorney Gen- 
eral, in the name of the people, by action in any court of competent jurisdiction. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§ 65-364. Additional penalty for fraudulent failure to file, pay, etc. 

Any person or any officer or employee of any corporation or member or 
employee of any partnership who, with intent to evade any requirement of this 
chapter or any lawful requirement of the Commission under this chapter, 
shall fail to pay any tax, to make, sign or verify any return or to supply any 
information required by or under the provisions of this chapter or who, with 
like intent, shall make, render, sign or verify any false or fraudulent return or 
statement or shall supply any false or fraudulent information shall be liable 
to a penalty of five hundred dollars to be recovered by the Attorney General, 
in the name of the people, by action in any court of competent jurisdiction 
and shall also be guilty of a misdemeanor and shall, upon conviction, be fined 
not to exceed five thousand dollars or be imprisoned not to exceed five years 
or both, at the discretion of the court. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§ 65-365. Commission may waive or reduce penalties or interest. 

The Commission may, upon making a record of its reason therefor, waive 
or reduce any of the additional taxes or interest provided in §§ 65-361 to 65-364 
or §65-321. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§ 65-366. All failures deemed to take place in Columbia. 

The failure to do any act required by or under the provisions of this chapter 
shall be deemed an act committed in part at the office of the Commission in 
Columbia. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 

§ 65-367. Certificate of Commission as prima facie evidence. 

The certificate of the Commission to the effect that a tax has not been 
paid, that a return has not been filed or that information has not been supplied 
as required by or under the provisions of this chapter shall be prima facie evi- 
dence that such tax has not been paid, that such return has not been filed or 
that such information has not been supplied. 

1942 Code §2466; 1932 Code §2466; 1927 (35) 1. 



332 



§65-401 Taxation §65-405 

CHAPTER 6. 
Income Tax on Banks. 

Sec. Sec. 

65-401. "Banks" and "taxpayers" defined. 65-404. Enforcement; administration. 

65-402. Tax on income of banks. 65-405. Payment of tax; distribution. 

65-403. Tax in lieu of other taxes except on 65-406. Invalidity, 
real property. 

§ 65-401. "Banks" and "taxpayers" defined. 

For the purpose of this chapter and unless otherwise required by the con- 
text, the words "banks" and "taxpayers," whenever used in this chapter, 
shall mean any person engaged in a banking business, whether incorporated 
under the laws of this State, any other state or the United States or whether 
unincorporated, except cash depositories. 

1942 Code §2676; 1937 (40) 565; 1938 (40) 1762. 

§ 65-402. Tax on income of banks. 

A tax is imposed upon every bank engaged in business in the State which 
shall be levied, collected and paid annually with respect to the entire net 
income of the taxpayer doing a banking business within this State or from 
the sales or rentals of property within this State, computed at the rate of four 
and one-half per cent of the entire net income of such bank or taxpayer. 

1942 Code §2676; 1937 (40) 565; 1938 (40) 1762. 

Cross reference. — As to bank notes and 
stock exempt from taxes, see § 65-1522. 

§ 65-403. Tax in lieu of other taxes except on real property. 

The income tax provided in this chapter shall be in lieu of all other taxes 
on banks, except taxes on real property. The real property of any such bank 
shall be taxed in the place where it may be located, the same as the real 
property of individuals. 

1942 Code §2676; 1937 (40) 565; 1938 (40) 1762. 

§ 65-404. Enforcement ; administration. 

For the purpose of administration, enforcement, collection, liens, penalties 
and other similar provisions, all of the provisions of chapter 5 of this Title 
that may be appropriate or applicable are adopted and made a part of this 
chapter for the enforcement and administration of this chapter. 

1942 Code §2676; 1937 (40) 565; 193S (40) 1762. 

§ 65-405. Payment of tax ; distribution. 

The taxes provided for in this chapter shall be paid to the Commission as 
is provided in § 65-404 and the income tax paid under the provisions of this 
chapter shall be distributed among the general fund of the State the county 
and municipality which the bank is located as follows: 

( 1 ) Ten per cent to the general fund of the State ; 

(2) Sixty per cent to the county ; and 

233 



§ 65-406 



Code of Laws of South Carolina 



§ 65-406 



(3) Thirty per cent to the municipality in which the bank is located. 
The revenue received from banks located outside of incorporated cities 
or towns shall be distributed as follows : 

(1) Forty per cent to the general fund of the State ; and 

(2) Sixty per cent to the county. 

The Commission shall draw warrants on the State Treasurer for such dis- 
tribution on or before May 15th of each year and the State Treasurer shall 
honor such warrants. 

For the purpose of and in the distribution of the taxes paid under this 
chapter by a bank having one or more branches, each branch of the bank 
shall be deemed to have paid such portion of the entire tax as its deposits on 
January 1st of each taxable year bear to the total of the deposits of all 
branches and the tax shall be distributed accordingly. 

1942 Code §2676; 1937 (40) 565; 1938 (40) 1762. 

§ 65-406. Invalidity. 

In case the first sentence of § 65-403 should for any reason be declared 
to be invalid by a court of competent jurisdiction, the provisions of §§ 2663 
through 2675, 2677 and paragraphs (33), (34) and (53) of § 2578 of the Code 
of 1942 shall be and remain in full force and effect and the income tax pro- 
vided in this chapter shall not be effective. 

1942 Code §2676; 1937 (40) 565; 1938 (40) 1762. 



CHAPTER 7. 
Inheritance Tax.* 



Article 1. 
General Provisions. 
Sec. 
65-451. Definitions. 

65-452. Territories of the United States. 
65-453. States having no inheritance tax 

laws. 
65-454. Blanks and forms; penalty for re- 
fusal to use. 
65-455. Effect of chapter on accrued penal- 
ties; remission thereof. 

Article 2. 
Imposition of Tax; Valuations, etc. 

65-461. Transfers subject to tax. 

65-462. Powers of appointment." 

65-463. Joint ownership passing to sur- 
vivor. 

65-464. Certain transfers deemed in con- 
templation of death. 



Sec. 
65-465. 

65-466. 
65-467. 

65-468. 
65-469. 

65-470. 
65-471. 
65-472. 
65-473. 

65-474. 

65-475. 

65-476. 

65-477. 



Bequest or legacy to an executor or 
trustee. 

Debts due at or after death. 

Tax rates on transfer to close rela- 
tive. 

Exemptions in such cases. 

Tax rates on transfers to other rela- 
tives. 

Exemptions in such cases. 

Tax rate on other transfers. 

Exemptions in such cases. 

Educational, charitable, etc., ex- 
emptions. 

Valuation of interest in property 
less than an estate in fee. 

Same; when value of such estate 
dependent upon contingency. 

Same; when identity of remainder- 
man uncertain. 

Legacies, etc., not diminished by 
claim of legatees, etc. 



* As to inheritance tax fee, see § 27-303. 



334 



§65-451 



Taxation 



§65-451 



Sec. 
65-478. Property not taxed more than once 

a year. 
65-479. Abatement of tax on small amount 

of personal property. 

Article 3. 

Special Provisions Affecting Non- 
residents' Estates. 

65-481. When tax not applicable to per- 
sonal property. 

65-482. Debts due by residents to nonresi- 
dents. 

65-483. When nonresidents may have ex- 
emptions. 

65-484. Duty of executor or administrator 
appointed for nonresident. 

65-485 to 65-490. Blank. 

65-491. Determination of tax on nonresi- 
dent's estate when no administra- 
tion in State. 

65-492. When local administrator ap- 
pointed. 

Article 4. 
Collection of Tax. 

65-501. Probate judge to send information 

to Commission. 
65-502. Report of real estate transfers. 
65-503. Tax payable upon transfer of se- 
curities by foreign fiduciary. 
65-504. No transfer without retention of 

portion for tax or waiver from 

Commission. 
65-505. Enforcement of §65-504; penalties 

and suits. 
65-506. Determination of amount of tax and 

payment. 
65-507. Appraisal by Commission. 
65-508. Tax assessed on market value of 

estate; determination thereof. 



Sec. 

65-509. Appeal from Commission's deter- 
mination of value. 

65-510. Appeal from Commission's assess- 
ment. 

65-511. When tax payable generally; inter- 
est and lien. 

65-512. Executor, administrator or trustee 
to deduct tax. 

65-513. Same; in case of a specific legacy. 

65-514. Same; in case of land. 

65-515. Same; when legacy is payable out 
of real estate. 

65-516. Same; conveyance during lifetime 
of property out of State. 

65-517. Same; when property less than an 
estate in fee is devised or be- 
queathed. 

65-518. When court may authorize sale of 
real estate. 

65-519. Requiring appearance of executor; 
production of books, etc. 

65-520. Summons to appear. 

65-521. Mandamus to compel appearance. 

65-522. No final discharge prior to payment 
of tax. 

65-523. Effect of Commission's certificate; 
lien on property not inventoried. 

65-524. Extension of time for payment of 
tax. 

65-525. Appearance of Commission in 
court; notice of proceedings in 
court. 

65-526. Tax Commission to certify and 
collect tax; receipt. 

65-527. Suits to collect taxes; injunctions 
against transfers. 

65-528. Payment of judgment and remit- 
tance to State Treasurer; execu- 
tions. 

65-529. Accrued penalties under former act. 



Article 1. 
General Provisions. 

§65-451. Definitions. 

(1) The term "child" or "children" whenever used in this chapter shall be 
so construed as to include a child or children legally adopted in conformity 
with the laws of this or an}- other state ; and 

(2) "Beneficial interest" wherever it appears in this chapter shall mean the 
net value of the estate, real, personal or mixed, devised, inherited or other- 
wise passing under the provisions of this chapter after deducting all valid 
and subsisting mortgages, liens or other debts due thereon by the deceased. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (.33) 902; 1925 (34) 201; 1929 
(36) 226. 

335 



§ 65-452 Code of Laws of South Carolina § 65-461 

§ 65-452. Territories of the United States. 

For the purpose of this chapter the District of Columbia and possessions 

of the United States shall be considered territories of the United States. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-453. States having no inheritance tax laws. 

The provisions of this chapter shall not apply to those states which have 

no inheritance tax laws. 

1942 Code §2480; 1932 Code §2480; 1922 (33) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-454. Blanks and forms ; penalty for refusal to use. 

The Commission shall prescribe all forms, books and blanks for the use 
of the probate judges for the administration of this chapter, which shall be 
provided at the expense of the several counties, and the Commission shall 
mail notice to the probate judge of each form, book or blank required to 
be used thirty days before the use thereof is required. In case any probate 
judge shall fail, refuse or neglect to use any forms, books or blanks prescribed 
by the Commission as above provided he shall be subject to a penalty of one 
hundred dollars and an additional penalty of ten dollars for each day's 
omission. Upon the request of the Commission the Attorney General or any 
solicitor shall institute an action in the court of common pleas for the re- 
covery of the penalty provided in this section. The Commission, upon good 
cause shown, may, in its discretion, remit the penalty or any part thereof 
prescribed in this section. 

1942 Code §2501; 1932 Code §2501; 1922 (32) 800; 1924 (33) 902. 

§ 65-455. Effect of chapter on accrued penalties ; remission thereof. 

Liability to any penalty that may have heretofore accrued shall not be af- 
fected by this chapter and any such penalty may be enforced as heretofore 
provided. But the Commission may, upon good cause shown, in its discre- 
tion remit such penalty in whole or in part. 

1942 Code § 2S04; 1932 Code § 2504; 1924 (33) 902. 

Article 2. 

Imposition of Tax; Valuations, etc. 

§ 65-46L. Transfer subject to tax. 

A tax is imposed upon the transfer of any property, real, personal or mixed, 
or of any interest therein or income therefrom, in trust or otherwise, to 
persons, institutions or corporations, not in this chapter exempted for the 
support of the State government, in the following cases : 

(1) When the transfer is by will or by the intestate laws of this State from 
any person dying, seized or possessed of the property while a resident of 
the State; 

(2) When the transfer is by will or the intestate laws of property within 

336 



§ 65-462 



Taxation 



§65-462 



the State and the decedent was a nonresident of the State at the time of his 
death ; and 

(3) When the transfer is of property made by a resident or by a non- 
resident when such nonresident's property is within this State by deed, 
grant, bargain, sale or gift made in contemplation of the death of the grantor, 
vendor or donor or intended to take effect in possession or enjoyment at or 
after such death. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 



The primary purpose of the General As- 
sembly in passing the inheritance tax law 
was the imposition of the tax and setting 
up machinery for its collection and enforce- 
ment. Spartanburg County v. Pace, 204 
S. C 322, 29 S. E. (2d) 333 (1944). 

This article imposes tax on what benefi- 
ciaries of estate may receive, and is not tax 
on transfer of estate. Simmons v. South 
Carolina Tax Comm., 134 S. C. 261, 132 S 
E. 37 (1926). 

And before assessing such tax Federal 
inheritance tax must be deducted. — Fed- 
eral inheritance tax should be deducted be- 
fore assessing tax against legatees and dev- 
isees under this section. Simmons v. 
South Carolina Tax Comm., 134 S. C. 261, 
132 S. E. 37 (1926). 

Federal estate tax held allowable as de- 
duction before assessing State inheritance 
tax against decedent's estate, but only 
amount actually paid is the measure of de- 
duction allowable. Beidler v. South Caro- 
lina Tax Comm., 162 S. C. 447, 160 S. E. 
264 (1927), reversed on another point in 



Beidler v. South Carolina Tax Comm., 
282 U. S. 1, 51 S. Ct. 54, 75 L. Ed. 131 
(1930). 

Conditional devise of fee taxed under this 
section. — Devise of fee, conditional on event 
of issue, or defeasible by failure of issue, 
is not taxable at rate provided for interest 
less than estate in fee, with remainder to 
others. Simmons v. South Carolina Tax 
Comm., 134 S. C. 261, 132 S. E. 37 (1926). 

Transfer of indebtedness. — Indebtedness 
of domestic corporation to nonresident 
stockholder for advances and dividends due 
stockholder held not subject to State in- 
heritance tax since evidence was insuffi- 
cient to show that the indebtedness had a 
business situs in the State. Beidler v. South 
Carolina Tax Comm., 282 U. S. 1, 51 S. Ct. 
54, 75 L. Ed. 131 (1930). 

Applied in Barkley v. South Carolina 
Tax Comm., 191 S. C. 147, 3 S. E. (2d) 
809 (1939). 

Cited in Cooley v. South Carolina Tax 
Comm., 204 S. C. 10, 28 S. E. (2d) 445 
(1943). 



§ 65-462. Powers of appointment. 

Whenever any person, institution or corporation shall exercise a power 
of appointment derived from any disposition of property made either before 
or after the passage of this chapter, such appointment, when made, shall be 
deemed a taxable transfer under the provisions of this chapter in the same 
manner as though the property to which such appointment relates belonged 
absolutely to the donee of such power and had been bequeathed or devised 
by such donee by will. And whenever any person, institution or corporation 
possessing such a power of appointment so derived shall omit or fail to exer- 
cise it within the time provided therefor, in whole or in part, a transfer taxable 
under the provisions of this chapter shall be deemed to take place to the 
extent of such omission or failure in the same manner as though the person, 
institution or corporation thereby becoming entitled to the possession or en- 
joyment of the property to which such power related had succeeded thereto 
by a will of the donee of the power failing to exercise such power, taking 
effect at the time of such omission or failure. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

[6 SC Code]— 22 337 



§ 65-463 Code of Laws of South Carolina § 65-467 

§ 65-463. Joint ownership passing to survivor. 

Whenever property, real or personal, is held in the joint names of two or 

more persons or is deposited in banks or other institutions or depositories 

in the joint names of two or more persons and payable to either or to the 

survivor, upon the death of one of such persons the right of the surviving 

joint tenant to the immediate ownership or possession and enjoyment of 

such property shall be deemed a transfer taxable under the provisions of 

this chapter in the same manner as though the whole property to which such 

transfer relates was owned by such parties as tenants in common and had 

been bequeathed to the surviving joint tenant by such deceased joint tenant 

or joint depositor by will. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-464. Certain transfers deemed in contemplation of death. 

Transfers of property by gift or deed between parties related by blood or 
marriage, made and completed within five years prior to death and without 
an adequate valuable consideration, shall be considered made in contempla- 
tion of death. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-465. Bequest or legacy to an executor or trustee. 

If a testator gives, bequeaths, or devises to his executors or trustees any 
property otherwise liable to such tax, in lieu of their compensation, the value 
thereof in excess of their lawful compensation, as determined by the probate 
court upon the application of any interested party or the Commission, shall 
nevertheless be subject to the provisions of this chapter. 

1942 Code §2482; 1932 Code, §2482; 1922 (32) 800. 

§ 65-466. Debts due at or after death. 

The amount due upon the claim of any creditor against the estate of a de- 
ceased person arising under a contract made after February 23 1922, if 
payable by the terms of such contract at or after the death of the deceased, 
shall be subject to the same tax imposed by this chapter upon a legacy of 
like amount. 

1942 Code § 2491; 1932 Code § 2491; 1922 (32) 800; 1947 (45) 227. 

§ 65-467. Tax rates on transfer to close relative. 

Whenever the beneficial interest in any property or income therefrom 
shall pass to or for the use of any husband, wife, child, grand-child, father or 
mother the rate of tax shall be one per cent on any amount up to and in- 
cluding the sum of twenty thousand dollars, two per cent on all sums in 
excess of twenty thousand dollars and not exceeding forty thousand dollars, 
three per cent on all sums in excess of forty thousand dollars and not ex- 
ceeding eighty thousand dollars, four per cent on all sums in excess of eighty 
thousand dollars and not exceeding one hundred and fifty thousand dollars, 

338 [6SCCode] 



§ 65-468 Taxation § 65-470 

five per cent on all sums in excess of one hundred and fifty thousand dollars 

and not exceeding three hundred thousand dollars and six per cent on all 

sums in excess of three hundred thousand dollars. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-468. Exemptions in such cases. 

Any gift, legacy, inheritance, transfer, appointment or interest passing to 
a husband or wife which may be valued at ten thousand dollars or less 
shall not be subject to any such duty or taxes and the taxes shall be levied in 
such cases only upon the excess of ten thousand dollars received by each such 
person. 

Any gift, legacy, inheritance, transfer, appointment or interest passing to 
a minor child which may be valued at seven thousand five hundred dollars 
or less shall not be subject to any such duty or taxes and the taxes shall 
be levied in such cases only upon the excess of seven thousand five hundred 
dollars received by each such person. 

Any gift, legacy, inheritance, transfer, appointment or interest passing to 
an adult child or a father or mother which may be valued at five thousand 
dollars or less shall not be subject to any such duty or taxes and the tax 
shall be levied in such cases upon the excess of five thousand dollars re- 
ceived by each such person. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-469. Tax rates on transfers to other relatives. 

Whenever the beneficial interest in any property or income therefrom shall 
pass to or for the use of any lineal ancestors or lineal descendants other than 
those mentioned in § 65-467 or to brothers, sisters, uncles, aunts, nieces or 
nephews or the wife or widow of a son or the husband of a daughter the 
rate of tax shall be as follows : two per cent on any amount up to and in- 
cluding twenty thousand dollars, three percent on all sums in excess of 
twenty thousand dollars and not exceeding forty thousand dollars, four per 
cent on all sums in excess of forty thousand dollars and not exceeding eighty 
thousand dollars, five per cent on all sums in excess of eighty thousand dol- 
lars and not exceeding one hundred and fifty thousand dollars, six per cent 
on all sums in excess of one hundred and fifty thousand dollars and not ex- 
ceeding three hundred thousand dollars, and seven per cent on all sums in 
excess of three hundred thousand dollars. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-470. Exemptions in such cases. 

Any gift, legacy, inheritance, transfer, appointment or interest passing to 
any lineal ancestor or lineal descendant other than those mentioned in § 65- 
467, brother, sister, uncle, aunt, niece, nephew, wife or widow of a son or hus- 
band of a daughter which may be valued at five hundred dollars or less shall 

339 



§65-471 Code of Laws of South Carolina §65-474 

not be subject to any such duty or taxes and the tax is to be levied in such 

cases only upon the excess of five hundred dollars received by any such person. 

1942 Code §2480; 1932 Code §2480; 1922 {32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-471. Tax rate on other transfers. 

In all other cases the rate of tax shall be as follows : four per cent on any 
amount up to and including the sum of twenty thousand dollars, six per cent 
on all sums in excess of twenty thousand dollars and not exceeding forty 
thousand dollars, eight per cent on all sums in excess of forty thousand dol- 
lars and not exceeding eighty thousand dollars, ten per cent on all sums in 
excess of eighty thousand dollars and not exceeding one hundred and fifty 
thousand dollars, twelve per cent on all sums in excess of one hundred and 
fifty thousand dollars and not exceeding three hundred thousand dollars and 
fourteen per cent on all sums in excess of three hundred thousand dollars. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-472. Exemptions in such cases. 

Any gift, legacy, inheritance, transfer, appointment or interest passing to 

any person or corporation in the class mentioned in § 65-471 which may be 

valued at two hundred dollars or less shall not be subject to any duty or 

taxes and the tax is to be levied in such cases only upon the excess of two 

hundred dollars received by any such person or corporation. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-473. Educational, charitable, etc., exemptions. 

All property which shall so pass to or for the use of any educational, re- 
ligious, cemetery, or other institutions, societies or other public charities 
in the State, at, for or upon trust for any charitable purpose in this State, for 
the care of cemetery lots or for a city or town in this State for public purposes 
shall not be subject to any tax under the provisions of this chapter. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-474. Valuation of interest in property less than an estate in fee. 

When any interest in property less than an estate in fee shall pass by will 
or otherwise under the conditions set forth in this article to one or more bene- 
ficiaries, with remainder to others, the several interests of such beneficiaries, 
except as they may be entitled to exemption under the provisions of this 
chapter, shall be subject to the tax. The value of the annuity or life estate 
shall be determined by the actuaries' combined experience tables at four per 
cent compound interest, and the value of any intermediate estate less than 
a fee shall be so determined whenever possible. The value of a remainder 
after such estate shall be determined by subtracting the value of the inter- 
mediate estate from the total value of the bequest or devise. 

1942 Code §2481; 1932 Code §2481; 1922 (32) 800; 1932 (37) 1380. 

340 



§ 65-474 



Taxation 



§ 65-474 



Editor's note. — For the convenience of 
users of the Code the table referred to above 
for use in computing the value of life es- 
tates, annuities for life, intermediate estates, 
and remainders, and some explanatory mat- 
ter furnished by the South Carolina Tax 
Commission follow: 

(1) To compute the value of an annuity 
for life, multiply the amount of the annuity 
by the figure in column 1 opposite the age of 
the beneficiary, at the nearest birthday; the 
age when the first payment of the annuity 
is due (the date of death of the deceased if 
not otherwise stipulated in the will) is the 
proper age for this computation. 
Example: 

A, who is 24 years, 7 months, old at the 
date of death of the decedent is to receive 
annuity of $1,000 a year, first payment to 
be made one year after the death of the 
decedent. His age at the time the first 
payment is due, will be 25 years, 7 months, 
or — to his nearest birthday — 26 years. Mul- 
tiplying the amount of the annuity ($1,000) 
by the figure in column 1 after the age 
26 (18.660) gives $18,660, as the value of the 
annuity ($1,000 x 18.660 = $18,660). 

If the annuity does not begin to run for 
a period of more than one year it will be 
necessary to discount the value so computed 
at the rate of 4% per annum compounded, 
i. e., to take the present worth of the value 
computed as above. (See interest table giv- 
ing the present worth of $1 at compound 
interest, 4%.) 

(2) To compute the value of a life estate 
multiply the principal of the fund (the full 
fair value of the property as assessed) by 
the figure in column 2 opposite the age of 
the beneficiary, at the nearest birthday, at 
the date of the death of the deceased. 
Example: 

B, who is 42 years, 4 months, old at the 
death of the deceased, is to receive a life 
estate in property valued at $70,000. His 
age to the nearest birthday is 42 years. 
Multiplying the principal ($70,000) by the 
figure in column 2 opposite the age 42 
(.62-184), gives $43,738.80 as the value of 
the life estate inherited by B. 

(3) To compute the value of a remainder 
after a life estate or annuity is taken out 
of an estate, compute the value of the life 
estate or annuity and subtract this amount 
from the principal (the full fair value of the 
property as assessed) ; the difference so ob- 
tained is the value of the remainder. 
Example: 

C is to inherit the remainder after the 
life estate enjoyed by B. The value of this 
remainder is the difference between the 
value of the life estate and the total value 



of the property ($70,000 - $43,738.80 = 
$26,221.20). 

Directions for the solution of other prob- 
lems will be furnished by the Inheritance 

Tax Division upon request. 

Col. 1 Col. 2 

Value of an Value of a 
Annuity of $1 a Life Estate 

Age Year for Life of$l 

10 $20,454 .81816 

11 20.369 .81476 

12 20.282 .81128 

13 20.191 .80764 

14 20.096 .80384 

15 19.998 .79992 

16 19.896 .79584 

17 19.790 .79160 

18 19.681 .78724 

19 19.568 .78272 

20 19.450 .77800 

21 19.329 .77316 

21 19.204 .76816 

23 19.075 .76300 

24 18.941 .75764 

25 18.803 .75212 

26 18.060 .74640 

27 18.512 .74048 

28 18.360 .73440 

29 18.202 .72808 

30 18.040 .72160 

31 17.872 .71488 

7,2 17.698 .70792 

33 17.520 .70080 

34 17.335 .69340 

35 17.144 .68576 

36 16.948 .67792 

37 16.744 .66976 

38 16.534 .66136 

39 16.317 .65268 

40 16.093 .64372 

41 15.861 .63444 

42 15.621 .62484 

43 15.374 .61496 

44 15.119 .60476 

45 14.857 .59428 

46 14.590 .58360 

47 14.317 .57268 

48 14.039 .56156 

49 13.757 .55028 

50 13.470 .53880 

51 13.179 .52716 

52 12.884 .51536 

53 12.585 .50340 

54 12.283 .49132 

55 11.978 .47912 

56 11.670 .46680 

57 11.359 .45436 

58 11.046 .44184 

59 10.731 .42924 

60 10.415 .41660 

61 10.098 .40302 



341 



§ 65-475 



Code of Laws of South Carolina 



§ 65-476 



Age 



Col. 1 

Value of an 

Annuity of $1 a 

Year for Life 



62 $9,781 



63 
64 

65 
66 
67 
68 
69 
70 
71 
72 
73 
74 
75 
76 
77 
78 
79 
80 
81 
82 



9.464 
9.149 
8.836 
8.525 
8.217 
7.913 
7.613 
7.317 
7.026 
6.740 
6.459 
6.184 
5.915 
5.651 
5.394 
5.143 
4.899 
4.661 
4.429 
4.203 



Col. 2 
Value of a 
Life Estate 
of$l 
.39124 
.37856 
.36596 
.35344 
.34100 
.32868 
.31652 
.30452 
.29268 
.28104 
.26960 
.25836 
.24736 
.23660 
.22604 
.21576 
.20572 
.19596 
.18644 
.17716 
.16812 



Col. 1 
Value of an 
Annuity of $1 a 
Age Year for Life 
83 $3,980 



84 
85 
86 
87 
88 
89 
90 
91 
92 
93 
94 
95 
96 
97 
98 
99 



3.761 
3.544 
3.328 
3.114 
2.901 
2.691 
2.485 
2.284 
2.090 
1.906 
1.737 
1.584 
1.462 
1.367 
1.240 
1.000 



Col. 2 
Value of a 
Life Estate 
of$l 
.15920 
.15044 
.14176 
.13312 
.12456 
.11604 
.10764 
.09940 
.09136 
.08360 
.07624 
.06948 
.06336 
.05848 
.05468 
.04960 
.04000 



The tables set out applied. — Beasley v. 
United States, 81 F. Supp. 518 (1948); 
United States v. 15,883.55 Acres of Land, 
45 F. Supp. 783 (1942). 



§65-475. Same; when value of such estate dependent upon contingency. 

Whenever such intermediate estate or remainder is conditioned upon the 
happening of a contingency or dependent upon the exercise of a discretion 
so that the value of either cannot be determined by such tables, the value 
of the property which is the subject of the bequest shall be determined as 
provided in §§ 65-507 and 65-508 and, such value having thus been ascertained, 
the Commission shall, upon such evidence as may be furnished by the will 
and the executor's statement or by the beneficiaries or otherwise, determine 
the value of the interest of the several beneficiaries and the values thus de- 
termined shall be deemed to be the values of such several interests for the 
purpose of the assessment of the tax except in so far as they shall be changed 
by the Supreme Court upon appeal. The executor or any beneficiary ag- 
grieved by any such determination of the value of any such interest by the 
Commission may at any time within thirty days after notice thereof appeal 
therefrom to the Supreme Court which shall determine such value as well 
as the lawful tax thereon. 

1942 Code §2481; 1932 Code §2481; 1922 (32) 800; 1932 (37) 1380. 



§ 65-476. Same ; When identity of remainderman uncertain. 

Whenever the identity of the beneficiary who is to take such a remainder 
is conditioned upon the happening of a contingency or dependent upon the 
exercise of a discretion, the Commission shall assess the tax upon such re- 
mainder at the highest rate and amount which, on the happening of any of 
such contingencies or conditions or by the exercise of such discretion, would 
be possible under the provisions of this chapter and the executors shall be 
liable for such tax as in other cases. But if, at the termination of the inter- 

342 



§65-477 Taxation §65-481 

mediate estate, such remainder or any portion thereof shall pass to a person 
who at the time of the death of the decedent was exempt from such tax, such 
person may at any time within one year after the termination of the inter- 
mediate estate, but not afterwards, apply to the Commission for an abate- 
ment of the tax on such remainder as provided in § 65-479 and the Com- 
mission shall repay the amount adjudged to have been illegally exacted as 
provided in said section, with interest thereon at the rate of three per cent 
per annum from the date of the payment of the tax. 

1942 Code §2481; 1932 Code §2481; 1922 (32) 800; 1932 (37) 1380. 

§ 65-477. Legacies, etc., not diminished by claim of legatees, etc. 

The value of a legacy or distributive share in the estate of a deceased 
person for the purpose of the tax imposed by this chapter shall not be 
diminished by reason of any claim against the estate based upon any such 
contract as is described in § 65-466 in favor of the person entitled to such 
legacy or distributive share, except insofar as it may be shown affirmatively 
by competent evidence that such claim was legally due and payable in the 
lifetime of the decedent. 

1942 Code §2491; 1932 Code §2491; 1922 (32) 800. 

§ 65-478. Property not taxed more than once a year. 

The Commission shall not assess or collect inheritance taxes against the 
same estate or property, real or personal, oftener than once in a period of 
twelve months, regardless of the number of times it might have been in- 
herited in a twelve-month period. 

1947 (45) 227. 

§ 65-479. Abatement of tax on small amount of personal property. 

Whenever a specific bequest of household furniture, wearing apparel, 
personal ornaments or similar articles of small value is subject to a tax under 
the provisions of this chapter, the Commission, in its discretion, may abate 
such tax if, in its opinion, the tax is not of sufficient amount to justify the 
labor and expense of its collection. 

1942 Code § 2491 ; 1932 Code § 2491 ; 1922 (32) 800. 

Article 3. 
Special Provisions Affecting Nonresidents' Estates. 

§ 65-481. When tax not applicable to personal property. 

The tax imposed by this chapter in respect to personal property, except 
tangible personal property having an actual situs in this State, shall not be 
payable: 

(1) If the transferor at the time of his death was a resident of a state or 
territory of the United States or of any foreign country which at the time of 
his death did not impose a transfer tax or death tax of any character in re- 
spect to property of residents of this State, except tangible personal prop- 
erty having an actual situs in such state, territory, or foreign country; or 

343 



§ 65-482 Code of Laws of South Carolina § 65-484 

(2) If the laws of the state, territory or country of residence of the trans- 
feror at the time of his death contained a reciprocal exemption provision 
under which nonresidents were exempted from transfer taxes or death taxes 
of every character in respect to personal property, except tangible personal 
property having an actual situs therein, if the state, territory or country of 
residence of such nonresident allowed a similar exemption to residents of the 
state, territory or country of residence of such transferor. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

§ 65-482. Debts due by residents to nonresidents. 

Any such transfer as is taxed by this chapter shall be held and construed 
to include all debts and all obligations, secured and unsecured, owed by any 
resident, citizen, person or corporation of this State to any nonresident, ex- 
cept (a) bonds issued by this State or any subdivision thereof, (b) farm loan 
bonds issued pursuant to the Act of Congress, known as the Farm Loan Act, 
approved July 17 1917 and (c) collateral trust debentures or other similar 
obligations issued pursuant to the Act of Congress, known as the Agricul- 
tural Credits Act of 1923, approved March 4 1923, when such bonds are 
held and owned by any nonresident without the State and all property and 
the rights of any nature whatsoever over which this State has jurisdiction 
to enforce the payment of the tax. 

1942 Code §2480; 1932 Code §2480; 1922 (32) 800; 1924 (33) 902; 1925 (34) 201; 1929 
(36) 226. 

Applied in Weston v. South Carolina Tax 
Comm, 212 S. C. 530, 48 S. E. (2d) 504 
(1948). 

§ 65-483. When nonresidents may have exemptions. 

The exemptions granted in this chapter shall extend to organizations, 
associations and corporations organized under the laws of other states and 
residents therein if the law of the other state grants to organizations, asso- 
ciations and corporations organized under the law of this State and resi- 
dents therein a like and equal exemption. 

1946 (44) 1386. 

§ 65-484. Duty of executor or administrator appointed for nonresident. 

When real or personal estate within the State or any interest therein be- 
longing to a person who is not an inhabitant of the State shall pass by will 
or otherwise so that it may be subject to tax under the provisions of this 
chapter and an executor or administrator of the estate of the decedent is 
appointed by a probate court of this State upon ancillary proceedings or 
otherwise, such executor or administrator shall, for the purpose of this chap- 
ter, have the same powers and be subject to the same duties and liabilities 
with reference to such estate as though the decedent had been a resident 
of this State. 

1942 Code §2497; 1932 Code §2497; 1922 (32) 800. 

344 



§65-485 Taxation §65-501 

§§ 65-485 to 65-490. Blank. 

§ 65-491. Determination of tax on nonresident's estate when no administra- 
tion in State. 

In the absence of administration in this State upon the estate of a non- 
resident, the Commission may, at the request of an executor or administrator 
duly appointed and qualified in the state of the decedent's domicile or at the 
request of a devisee, legatee, distributee or grantee under a conveyance made 
during the grantor's lifetime and upon satisfactory evidence furnished it by 
such executor, administrator, devisee, legatee, distributee or grantee or other- 
wise, determine whether or not any estate of such decedent within this State 
is subject to tax under the provisions of this chapter and, if so, the amount 
of such tax and adjust such amount with such executor, administrator, dev- 
isee, legatee, distributee, grantee or other legal representative, and for that 
purpose may appoint an appraiser to appraise such property as provided in 
§§ 65-507 to 65-509 and the expense of such appraisal shall be a charge upon 
the estate in addition to the tax. The Commission's certificate as to the 
amount of such tax and receipt for the amount therein certified may be filed 
in the probate court having jurisdiction and when so filed shall be con- 
clusive evidence of the payment of the tax to the extent of the certification, 
as provided in § 65-523. 

1942 Code §2499; 1932 Code §2499; 1922 (32) 800; 1932 (37) 1380. 

§ 65-492. When local administrator appointed. 

Whenever in such a case as is mentioned in § 65-491 the tax is not adjusted 
within four months after the death of the decedent, the proper probate court, 
upon application of the Commission, shall appoint an administrator in this 
State as provided in § 19-404. 

1942 Code §2499; 1932 Code §2499; 1922 (32) 800; 1932 (37) 1380. 

Article 4. 
Collection of Tax. 

§ 65-501. Probate judge to send information to Commission. 

The probate judge shall, within thirty days after it is filed, send to the 
Commission by mail one copy of every statement filed with him by an 
executor or administrator, as provided in § 19-451, a copy of every will ad- 
mitted to probate and a cop} - of the inventory and appraisal of every estate 
and he shall in like manner send to the Commission a copy of every account 
of an executor or administrator within seven days after it is filed. But the 
Commission may pass general or special rules or orders to dispense with 
the requirements that the probate judge send to it copies of any or all papers 
in case it is manifest that no tax will be payable under the terms of this 
chapter. The probate judge shall also furnish copies of papers and such 
information as to the records and files in his office in such form as the Com- 
mission may require. 

1942 Code §2489; 1932 Code §2489; 1922 (32) 800; 1924 (.33) 902; 1932 (37) 1380. 

345 



§ 65-502 Code of Laws of South Carolina § 65-505 

§ 65-502. Report of real estate transfers. 

If real estate of a decedent so passes to another person as to become subject 
to such tax, his executor, administrator or trustee shall inform the Com- 
mission thereof within six months after his appointment or, if the fact is not 
known to him within that time, then within one month after the fact be- 
comes known to him. 

1942 Code §2490; 1932 Code §2490; 1922 (32) 800. 

§ 65-503. Tax payable upon transfer of securities by foreign fiduciary. 

If a foreign executor, administrator or trustee shall assign or transfer any 
stock or obligations in this State standing in the name of the decedent or in 
trust for a decedent, liable to any such tax, the tax shall be paid to the Com- 
mission on the transfer thereof. 

1942 Code §2498; 1932 Code §2498; 1922 (32) 800; 1924 (33) 902; 1932 (37) 1380. 

§ 65-504. No transfer without retention of portion for tax or waiver from 
Commission. 

No safe deposit company, trust company, corporation, bank or other insti- 
tution or person having in possession or under control securities, deposits or 
other assets belonging to or standing in the name of a decedent who was a 
resident or nonresident or belonging to or standing in the joint name of 
such decedent and one or more persons, including the shares of the capital 
stock of or other interest in the safe deposit company, trust company, cor- 
poration, bank or other institution making the delivery or transfer provided 
in this section, shall deliver or transfer the same to the executors, adminis- 
trators or legal representatives of such decedent or to the survivor or sur- 
vivors when held in the joint name of a decedent and one or more persons 
or upon their order or request unless notice of the time and place of such 
intended delivery or transfer be served upon the Commission at least ten 
days prior to such delivery or transfer ; nor shall any safe deposit company, 
trust company, corporation, bank or other institution or person deliver or 
transfer any securities, deposits or other assets belonging to or standing 
in the name of a decedent or belonging to or standing in the joint name of 
a decedent and one or more persons, including the shares of the capital stock of 
or other interest in the safe deposit company, trust company, corporation, 
bank or other institution making the delivery or transfer, without retaining 
a sufficient portion or amount thereof to pay any tax or interest which may 
thereafter be assessed on account of the delivery or transfer of such securities, 
deposits or other assets, including the shares of the capital stock of or other 
interest in the safe deposit company, trust company, corporation, bank or 
other institution making the delivery or transfer under the provisions of 
this section unless the Commission consent thereto in writing. 

1942 Code §2498; 1932 Code §2498; 1922 (32) 800; 1924 (33) 902; 1932 (37) 1380. 

§ 65-505. Enforcement of § 65-504; penalties and suits. 

The Commission, personally or by representatives, may examine such 
securities, deposits or assets at the time of such delivery or transfer. Fail- 

346 



§ 65-